Spain Joins Top 5 Global Real Estate Markets for Foreign Investors

Spain has taken a big step forward in the world of real estate investment. For the first time, it is now one of the top five countries globally for foreign investment in commercial property. According to the May 2025 Global Capital Flows report from Colliers, Spain has moved up three positions since early 2024 and now holds the fifth spot globally.

This change comes at a time when global investors are reevaluating where they allocate their investments in commercial real estate. Many are moving away from traditional options like the United States. As a result, Europe now hosts seven of the world’s top 10 destinations for cross-border real estate investment, which has seen a significant rise in cross-border capital inflows into Spain. These seven top European countries for real estate investment include the United Kingdom, Germany, France, Italy, the Netherlands, Poland, and now Spain.

Luke Dawson, Head of Global and EMEA Capital Markets at Colliers, explained that there is a noticeable shift in capital flows. Investors are choosing countries that offer clear rules, stable prices, and strong market conditions. With stable returns and strong fundamentals, many international buyers are now seriously considering investing in Spain property.

Why Spain Appeals to International Investors

Meanwhile, investor interest in Spain's commercial real estate in 2025 is growing rapidly, driven by optimism around market recovery. By May 2025, global funds had raised $58 billion (around €50 billion). That already makes up nearly half of all the capital raised during 2024. This shows that, when comparing Spain vs other European real estate markets, investor confidence in Spain’s property market is returning.

Key Drivers Behind Spain's Market Attractiveness

Several factors driving foreign capital into Spain’s property market include its stable economy and price changes across key sectors. The country’s economy remains stable, and prices in some sectors have adjusted in a way that appeals to both large institutions and individual investors. Alberto Díaz, managing director of Capital Markets at Colliers Spain, said that the country’s improved position is the result of both smart market conditions and a healthy economic climate.

Real estate trends in Spain show that more international investors are buying property, especially in the commercial sector, because of stable prices and strong market conditions. Spain strengthens its role as a key destination for global real estate investors who are looking for steady returns and a reliable environment. As the global real estate investment trends evolve, Spain is now firmly on investors’ radar and may continue climbing the rankings.

Ready to Invest in Spain?

To take advantage of the commercial property boom in Spain, you need to know where in the country you should invest. Check out our guide “Best Places to Buy Property in Spain” or contact us to learn more about the details of real estate investment opportunities in Spain.

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