Spain’s economic resilience signals strategic opportunity for real estate investors

In a global economy fraught with uncertainty, Spain is emerging as an outlier. While the International Monetary Fund (IMF) has revised down its growth forecasts for much of the world—citing escalating trade tensions and the ripple effects of protectionist policy shifts—it has upgraded Spain’s outlook, positioning the country as one of the few bright spots in an otherwise muted economic landscape.

Spain’s GDP is now projected to grow by 2.5% in 2025, a notable upward revision from earlier estimates and significantly outpacing the eurozone average, forecast at just 0.8%. In addition, Spain is forecast to grow more than the eurozone for the rest of the decade with 1.8% forecast for 2026 and 1.7% in 2027, while the rest of the eurozone is 1.2% in 2026 and 1.3% in 2027.

This revised trajectory is not the result of a singular event, but the cumulative effect of underlying structural resilience and sustained economic momentum.

Why is Spain projected to do so well?

The Spanish economy ended 2024 with stronger-than-anticipated performance, driven by a buoyant service sector and a robust export market, particularly in tourism, technology, and professional services. Reconstruction efforts following the DANA floods also contributed to GDP growth, injecting investment into affected regions and stimulating related industries. Crucially, Spain has remained relatively insulated from the adverse impacts of U.S.-driven trade policy changes, owing to its limited direct exposure to transatlantic trade frictions.

This resilience has direct implications for real estate. Economic growth translates directly into consumer confidence, employment stability, and sustained demand for both residential and commercial property. In an environment where many European markets are bracing for stagnation or contraction, Spain offers a compelling alternative. Investors looking to diversify geographically—or hedge against more volatile regions—will find its market fundamentals increasingly attractive.

What are we seeing on the ground?

At Lucas Fox, we have been seeing a notable increase in interest from European and overseas investors alike. The combination of macroeconomic growth, political stability, and comparatively moderate inflation is creating favourable conditions for acquisition—particularly in prime city locations such as Madrid, Barcelona and Málaga, as well as the Balearics.

Spain’s fundamentals also offer something increasingly rare in today’s fragmented global economy: long-term clarity. While the IMF has advised Spanish policymakers to accelerate fiscal adjustments and build future-proof buffers for demographic and climate-related pressures, this guidance is as much of a vote of confidence as it is a call to action. Spain is being encouraged to act from a position of strength and has the capacity to manage its growth sustainably.

For real estate investors, this matters. Confidence in a country’s governance translates into confidence in its property market. Institutional investors are more inclined to deploy capital. Second-home owners feel secure in the value of their holdings. Developers are incentivised to proceed with projects, enriching the broader real estate ecosystem.

There is also a broader shift underway. Spain is increasingly viewed not only as a lifestyle destination but as a practical and strategic base for globally mobile individuals. The combination of climate, digital infrastructure, international education, and favourable tax schemes for non-residents is reshaping Spain’s global positioning—from Mediterranean retreat to European business hub. In a country where property remains a preferred vehicle for both domestic and international capital, this evolving narrative aligns naturally with a long-term appreciation of prime assets.

As other markets recalibrate and political headwinds buffet traditional safe havens, Spain’s quiet outperformance may soon become central to the next phase of investment thinking. For buyers and institutional investors alike, the country now represents not just an aspirational lifestyle proposition—but a case study in stability, resilience, and sustained opportunity.