Madrid has once again confirmed its status as Europe’s leading city for real estate investment appeal. Just like last year, the Spanish capital tops the list among continental European cities, ranking second overall behind only London. This achievement puts Madrid ahead of giants like Paris, Berlin, and Amsterdam, which round out the top five.
The success of Spain’s capital city is the result of several factors. Key drivers include the strength of the local economy, positive forecasts for economic and demographic growth, as well as a strong ability to attract liquidity and actively develop the real estate market. These fundamentals make the city a magnet for international capital seeking reliable and profitable assets.
There is also great news for the Catalan capital. Barcelona has triumphantly returned to the top-10 best European cities for real estate investment, jumping three spots over the past twelve months. It now holds an impressive eighth place, right behind Munich and Milan, but ahead of Frankfurt and Hamburg.
Investors have praised Barcelona’s favorable economic and labor environment, as well as the wide range of investment opportunities at competitive prices compared to other major European markets. Nevertheless, experts point out that local regulatory frameworks still act as a restraining factor and pose certain challenges for investors.
Overall, in 2025, major players in the sector have focused on the most mature, liquid, and economically stable markets in Europe. Other cities are also attracting interest—for example, Lisbon, which this year dropped out of the top ten and landed in eleventh place. Following it are Warsaw, Dublin, Brussels, and Copenhagen.
Spain as a whole is showing impressive results, ranking fourth in Europe by real estate investment volume over the past four quarters, with approximately 16 billion euros. The UK still leads the market (60 billion), followed by Germany (40 billion) and France (24 billion). Notably, Spain has become one of the leaders in investment growth rates, posting an increase of 28%, significantly outpacing France (1%) and the UK (8%).
