Spain Commercial Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Spain Commercial Real Estate Market Trends and Insights

Post-pandemic re-shoring driving logistics demand

Supply-chain vulnerabilities exposed in 2020 pushed manufacturers to relocate production closer to European consumers, raising the logistics share of Spain commercial real estate market investment from 15% in 2014 to 34% in 2024. Central Spain registered a 25% jump in annual take-up, helped by CBRE Investment Management’s purchase of a 90,000 sqm complex in Pinto for last-mile delivery. Secondary hubs now attract 37% of total warehouse absorption, signalling cost-conscious occupiers’ shift away from prime zones. Investment volumes could hit USD 1.9 billion in 2025, nearly doubling the country’s 2019 share of European logistics allocations. 

Tourism recovery lifting urban hospitality assets

Tourism generated USD 198 billion in 2023, supporting hotel real estate. Total hotel investment hit USD 4.7 billion in 2023, highlighted by Atom Hoteles’ USD 121 million Tenerife exit, 83% above its 2019 purchase price. Mixed-use schemes combining rooms, retail and co-working are benefitting from the shift to experiential travel.

EU Green-Taxonomy accelerating retrofit investments

Spanish REITs issued USD 770 million in green bonds to fund energy-efficient upgrades, while Lar España achieved 98% BREEAM certification. Merlin Properties’ green-financing framework targets net-zero by 2030, pledging an 85% operational-carbon cut by 2028. ^{[3]Merlin Properties SOCIMI S.A., “Green Financing Framework 2024,” merlinproperties.com}

Near-shoring of LATAM tech firms to Spain

Information-and-communication-technology activity contributes 22.6% to GDP, anchored in Madrid and Catalonia, where 160 tech hubs generated a USD 3.2 billion impact in 2024. The Digital Strategy 2025 mobilises USD 17.25 billion of public funds, spurring modern office demand equipped with robust connectivity. ^{[1]ACCIÓ Catalonia Trade & Investment, “Tech Hubs in Catalonia 2024,” accio.gencat.cat}

Rising construction costs from Iberian labour shortage

Construction permits fell 9% in 2024 as developers absorbed higher wages and volatile material prices, widening the gap between 1.53 million housing starts and 2.40 million household formations recorded since 2008. With 26% of residential stock stalled, contractors prioritise pre-leased assets to manage risk.

Political uncertainty over housing-law spill-over to CRE

The 2023 housing act caps rents and taxes vacant units, igniting debate over possible extension to commercial segments. Foreign investors must now clear government reviews on transactions above USD 550 million, lengthening deal cycles. ^{[2]Gobierno de España – La Moncloa, “Housing Act 2023 Explained,” lamoncloa.gob.es}

Segment Analysis

By Property Type: Offices lead today while logistics accelerates

Offices held 34.2% of Spain commercial real estate market share in 2024, reinforcing their status as the benchmark asset class despite evolving workplace habits. Prime rents in Madrid’s CBD sit 12% above 2015, and Barcelona’s leasing jumped 20% in 2024 as technology and finance occupiers hunted ESG-ready space. Yet logistics assets post the fastest 7.00% CAGR to 2030 as e-commerce and near-shoring stoke sustained warehouse demand. Investment in secondary industrial corridors rose to 37% of annual take-up, illustrating the pursuit of cost-efficient land EY.

Flight-to-quality differentiates performance: 76% of legacy office stock faces obsolescence without retrofit, whereas Grade-A towers record single-digit vacancy. Logistics expansion is equally two-speed, with last-mile hubs inside Madrid’s third ring commanding rental premiums while mid-box facilities in Valencia offer yield spreads of 150 basis points. Retail parks add 850,000 sqm of gross leasable area via 44 new schemes by 2026, reflecting a pivot to convenience and leisure-anchored formats. Hospitality remains resilient: hotel investments touched USD 4.7 billion in 2023, underscoring tourism’s comeback.

Note: Segment shares of all individual segments available upon report purchase

By Business Model: Sales dominate, rentals gain pace

Sales transactions contributed 60.21% to the Spain commercial real estate market in 2024, driven by strong foreign capital inflows into trophy assets across Madrid, Barcelona and coastal resorts. The rental pathway, however, posts a 6.75% CAGR through 2030, outstripping sale growth as institutions hunt recurring income streams and occupiers prefer leasing to preserve balance-sheet flexibility. Prime residential yields are forecast to tighten 40 basis points by 2028, validating the appeal of cash-flow instruments.

Demographic shifts support rental growth: falling household sizes, delayed homeownership and a mobile workforce sustain demand for co-living, student housing and flexible offices. Corporate tenants structure short leases with expansion rights, mirroring rapid headcount swings in the tech-services base. On the sales side, value-add investors are targeting secondary shopping centres and dated warehouses for repositioning, banking on yield compression once ESG upgrades unlock liquidity.

By End-User: Corporate & SME needs steer demand

Corporate and SME occupiers consumed 72% of Spain commercial real estate market size in 2024, underpinned by a service sector that generates 76% of national output. Their space requirements are expected to grow at a 6.30% CAGR to 2030, centred on Grade-A offices with digital infrastructure, robotics-ready warehouses and mixed-use schemes supporting employee wellbeing.

Hybrid work propels smaller footprint but higher-spec premises: leading banks concentrated Madrid operations into smart headquarters, while US software majors pre-leased 25,000 sqm in Barcelona’s 22@ district. Individual investors access commercial product through tokenisation platforms that fractionalise office floors and retail parks, broadening the buyer base. Institutional funds participate both as landlords and joint-venture partners with developers to ensure pipeline visibility.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Madrid claimed 45.1% of Spain commercial real estate market share in 2024, reflecting its standing as the political and financial nucleus. CBD vacancy held at 4.3% and rental growth persisted despite elevated new-build costs as multinationals chose the capital for headquarters serving Iberia and Latin America. Logistics thrives within the city’s three-ring network; CBRE Investment Management’s 90,000 sqm Pinto acquisition signals confidence in last-mile locations. Data-centre investment of USD 6.72 million complemented government digitalisation grants, entrenching Madrid’s status as Spain’s primary tech hub.

Barcelona is the nation’s second-pillar. Office take-up rose 20% in 2024 and future supply remains largely pre-let, indicating an enduring flight-to-quality. The Catalonia tech-hub ecosystem delivered USD 3.2 billion in activity in 2024 across 160 incubators and expects to employ 42,752 professionals by 2026. Tourism recovery drew luxury-hotel investors, while the port authority’s carbon-neutral roadmap added buoyancy to warehouse developers eyeing multimodal trade flows.

Malaga, historically a leisure haven, is the fastest-growing regional market with a 7.200% CAGR to 2030. International tech giants opened satellite offices to leverage quality-of-life advantages and lower costs, accelerating demand for Class-A space. Valencia benefits from port connectivity and auto-supply-chain reshoring, widening its manufacturing footprint and stimulating speculative warehouse builds backed by Proequity’s bullish forecasts. Secondary cities such as Bilbao and Zaragoza attract investors seeking yield spreads of 200 basis points over Madrid CBD, made feasible by improved AVE high-speed-rail links that compress travel times.