The real estate investment market across Southern European countries — Italy, Spain, and Portugal — continues to demonstrate resilience and a strong capacity to attract capital, achieving transaction volumes exceeding €12 billion in the first half of 2025, marking an increase of over 30% compared to the same period last year.
The market is primarily driven by the Hospitality and Retail sectors, underpinned by robust fundamentals and the sustained dynamism of tourism demand and consumer spending. Urban regeneration is also gaining momentum, with numerous projects to convert obsolete buildings – particularly offices – into hotels and residences.
The Living sector, particularly within metropolitan areas, is emerging as a growing asset class of interest for investors. Meanwhile, the logistics and industrial sectors are showing positive signs, although still affected by supply constraints. Investor interest is focused not only on prime assets but increasingly on core+/value-add opportunities, with a focus on transformation potential and value creation.
These factors, combined with improving financing conditions, highlight how Southern Europe is experiencing a period of consolidation and growth, with an increasingly mature, diversified and innovation-oriented market in terms of space utilisation.
