Commercial Real Estate Market in Spain - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Commercial Real Estate Market in Spain is segmented by Type (Offices, Retail, Industrial, Logistics, Multi-family, and Hospitality) and Key City (Madrid, Valencia, Barcelona, and Catalonia).

Market Snapshot

Market Summary
Study Period:

2016 - 2026

Base Year:



8.56 %

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Market Overview

Spain's economy currently looks positive with a forecasted GDP of nearly 2%, in the coming years. 

  • Spain is one of the larger Western European countries, with a population of nearly 46 million. Furthermore, the population is expected to grow around 1.2% in the upcoming years, which is likely to increase the demand for commercial floorspaces in the country. The institutional market of Spain is majorly dominated by investments in the office and retail markets, which make up 40% and 44%, respectively, of the Spanish IPD index. 
  • The Spanish office real estate market remained stable throughout 2018. The large market players are eyeing cities, like Barcelona, for office spaces, which is one of the best cities for start-ups, innovations, and technologies in Europe.
  • The hospitality real estate market also saw significant growth in Spain, due to increasing tourist arrivals. More than 81 million foreign tourists visited the country in 2018, with cities like Catalonia accounting for nearly 23% of these tourist arrivals. In 2018, international and local investors invested around EUR 4.8 billion in the existing hotel infrastructure, new facilities, and building sites. 


Scope of the Report

  This report aims to provide a detailed analysis of the Spanish commercial real estate market. It focuses on the market dynamics, technological trends, insights, and government initiatives taken in the commercial real estate sector. Also, it analyzes the key players present in the market and the competitive landscape in the Spanish commercial real estate market.

By Type
By Key City

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Key Market Trends

High Demand for Office Spaces Across Key Cities in Spain

The Spanish office real estate market remained stable throughout 2018. One of the key events that occurred was the purchase of a Barcelona-based Diagonal de Barcelona complex for EUR 250 million by Blackstone. The deal was important because not only did it demonstrate investor confidence in the Catalan capital, but it also turned out to be the largest single-asset transaction in Spain

The offices witnessed an increased demand across key cities in Spain, such as Madrid and Barcelona. In 2018, the office take-up reached around 5,41,000 sqm in Madrid, with most of the take-up by service and tech companies. In Barcelona, international companies saw an increased take-up in the office space, in 2018.

Due to the rising demand for office spaces in the country, the vacancy rates for the office market reduced significantly, especially in cities, like Madrid and Barcelona. The average vacancy rates of office space in Europe stood at 7%, as of 2019, with Madrid and Barcelona’s vacancy rates reducing to 9.5% and 6.1%, respectively. The vacant space is expected to continue reducing in both cities, with high levels of take-up forecasted for the coming two years, which may increase the demand for the office market in the country. 


spain comm trend 1

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Increase in Retail Real Estate

The retail sector is performing quite well in the Spanish real estate market. Breakthroughs in technology and the greater influence of the younger generations are two of the main reasons for this rising demand in the retail sector.

In Spain, 17 new shopping centers are expected to open before 2021. In 2018, three shopping centers and five retail parks were added in Spain, adding a GLA of nearly 262,000 sqm to the stock. In 2019, around 16 projects were under construction, which were expected to add an estimated GLA of 300,000-350,000 sqm to the retail market. Expansion is more likely to be witnessed in the retail markets, including sporting goods, cosmetics, food and beverage, home, etc. Increasing development activity in the shopping center sector may also give a boost to the retail real estate sector.


spain commercial trend 2

Competitive Landscape

The commercial real estate market in Spain is fragmented, with the presence of both local and international players. Some of the major players operating in the commercial real estate sector in the country include Merlin Properties, Via Celere, Kronos Investment Group, and Klapierre. The country is also witnessing an increase in international investors, as its economy is rebounding, with some of the international investors from countries, like the United States, the United Kingdom, France, and Germany. 

Table of Contents


    1. 1.1 Current Economic Scenario and Consumer Sentiment

    2. 1.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 1.3 Government Initiatives, Regulatory Aspects for Commercial Real Estate Sector

    4. 1.4 Insights into Existing and Upcoming Projects

    5. 1.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending

    6. 1.6 Insights into Rental Yields in Commercial Real Estate Segment

    7. 1.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate

    8. 1.8 Insights into Public-private Partnerships in Commercial Real Estate

    9. 1.9 Insights into Real Estate Tech and Startups Active in Real Estate Segment (Broker, Social Media, Facility Management, and Property Management)


    1. 2.1 Drivers

    2. 2.2 Restraints

    3. 2.3 Opportunities


    1. 3.1 By Type

      1. 3.1.1 Offices

      2. 3.1.2 Retail

      3. 3.1.3 Industrial

      4. 3.1.4 Logistics

      5. 3.1.5 Multi-family

      6. 3.1.6 Hospitality

    2. 3.2 By Key City

      1. 3.2.1 Barcelona

      2. 3.2.2 Madrid

      3. 3.2.3 Valencia

      4. 3.2.4 Catalonia


    1. 4.1 Market Concentration

    2. 4.2 Company Profiles

      1. 4.2.1 Developers

        1. Merlin Properties

        2. Via Celere

        3. Kronos Investment Group

        4. Klepierre

        5. Quabit Immobilaria

      2. 4.2.2 Other Companies (Real Estate Brokerage Firms, Startups, Associations, etc.)

        1. JLL

        2. Colliers International

        3. AGP Real Estate Investment

        4. Lusa Realty

        5. Seular

        6. Inmobilaria Cambas

        7. Maklarbyran

        8. Target Spanish Properties

        9. Spain Properties Invest



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Frequently Asked Questions

The Spain Commercial Real Estate Market market is studied from 2016 - 2026.

The Spain Commercial Real Estate Market is growing at a CAGR of 8.56% over the next 5 years.

  • Merlin Properties
  • Via Celere
  • Kronos Investment Group
  • Klepierre
  • Quabit Immobilaria

Are the major companies operating in Spain Commercial Real Estate Market.

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