The living sector—encompassing both residential and tourism-related real estate—has taken the lead in real estate investment at the start of 2024. Together, residential and tourism segments accounted for more than half of total investment, with residential alone topping the chart with over €1.5 billion (27% of the total volume). Close behind, the tourism sector attracted over €1.4 billion (25%).
Inflation and geopolitical instability have shaped the socioeconomic backdrop of the real estate sector in the first half of 2024. Despite this, the market has shown growing resilience. Spain surpassed €5.5 billion in total investment during the first half of the year—an increase of 4% compared to the same period in 2023. Within the living segment, the most innovative and competitive niches—such as flexible housing formats and student residences—have set the pace.
Performance of other sectors
Retail is gaining strength, attracting nearly €1 billion, which represents close to 20% of total investment. It is followed by the office sector with €830 million (15%) and the industrial sector with €400 million (7%). Amid rising interest rates, prime office yields have increased to as much as 4.8%, contrasting with a decline in student housing yields within the residential sector.
Focus on the office market
In Barcelona, the availability of large-format office spaces in new or refurbished buildings at competitive prices is drawing increased demand, with a year-on-year increase of 32%. The city center remains a stronghold, attracting both tenants and investors. It accounts for 42% of total leased surface area and 27% of total investment. Investment is particularly focused on large office spaces in high-quality, newly built or refurbished properties.
Madrid’s office market also closed the first half of the year with positive results, posting a 4% year-on-year increase, with 270,000 m² leased and €330 million invested. If this trend continues, the city is on track to exceed 500,000 m² in total leasing activity by the end of 2024. Notably, 56% of transactions have occurred outside the M-30 ring road, indicating a shift toward peripheral markets.
Investor profile and trends
Investment continues to be driven primarily by private and domestic investors, who account for 57% of the total. British and American investors follow, jointly making up 12%. Madrid and Barcelona remain the most attractive markets, together capturing half of the overall investment volume.
