Southern Europe real estate investment rises 39% in H1 2026

Real estate investment in Southern Europe is experiencing a significant recovery. According to Cushman & Wakefield, Spain, Italy, and Portugal saw 18.2 billion euros in real estate investment during the first half of 2026, representing a 39% increase compared to the same period in 2025.

The retail sector is emerging as a primary driver for investors, supported by tourism, consumer demand, and increased foot traffic in commercial spaces. This demand is creating new opportunities in shopping centers, retail parks, and mixed-use projects. In contrast, the office sector is undergoing a more selective period, focusing on high-quality assets and repositioning strategies to meet the evolving needs of businesses and workers.

In the hospitality sector, the European hotel market is showing solid growth, with Southern Europe attracting substantial international interest. Trends indicate a shift toward diverse hospitality models, including luxury segments, serviced residences, co-living, and hybrid structures that prioritize experiential travel.