# Southern Europe real estate investment recovery

> Live situation record from CLSTR: https://clstr.news/situations/southern-europe-real-estate-investment-recovery
> Updated: 2026-09-17T11:07:00.000Z. Sources: 8. Developments: 2.

Real estate investment in Southern Europe, specifically in Spain, Italy, and Portugal, saw a significant recovery during the first half of 2026. Total investment reached 18.2 billion euros, marking a 39% increase compared to the same period in 2025.

The retail sector has emerged as a primary driver for this growth, fueled by tourism, consumer demand, and increased foot traffic in commercial spaces. This has created opportunities in shopping centers, retail parks, and mixed-use projects. Meanwhile, the hospitality sector is experiencing solid growth and attracting international interest, with a trend toward luxury segments and diverse models like co-living and hybrid structures. In contrast, the office sector is undergoing a more selective period focused on high-quality assets and repositioning.

## Timeline

### 2026-09-17: Retail sectors show growth in Spain and Peru

Spain's retail sector grew 5.7% in 2025, outpacing the EU average, while Peru projects retail growth up to 6% by 2027 with significant new shopping mall investments.

2 sources. https://clstr.news/cluster/retail-sectors-show-growth-in-spain-and-peru

### 2026-09-17: Southern Europe real estate investment rises 39% in H1 2026

Real estate investment in Spain, Italy, and Portugal rose 39% in H1 2026, driven by a strong recovery in the retail and hospitality sectors across Southern Europe.

6 sources. https://clstr.news/cluster/southern-europe-real-estate-investment-rises-39-in-h1-2026

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Cite as: Southern Europe real estate investment recovery. CLSTR, https://clstr.news/situations/southern-europe-real-estate-investment-recovery