Overview of Latin American Investments in Iberia
The Iberian region, encompassing Spain and Portugal, has become a prime destination for capital from Latin America. Over the past six years, investors from the region have shown optimism towards the Iberian real estate market to diversify their portfolios.
According to estimates by real estate firm CBRE, between 2019 and 2025, Latin America has channeled approximately $2 billion in real estate investments towards Iberia. In 2024 alone, Latin American funds contributed $523 million, accounting for 30% of the total over these six years.
Key Latin American Investors in Iberia
Luis Llaca, Director Cross-Border España-México at CBRE, stated that investors from Latin America, particularly Mexico, Colombia, Argentina, and Brazil, are strengthening their presence in this region, focusing on residential and commercial assets.
Mexico’s Dominant Role in Spanish Real Estate
Mexico has established itself as the primary source of Latin American capital in Spain’s real estate sector. CBRE reports that 56% of the flows entering the Spanish market come from Mexican investors, making the country a key player in many significant operations over recent years.
Attractiveness of the Spanish Market
Juan Pedro Sáenz-Díez, Vice President of Hotelier at CBRE Mexico, highlighted the appeal of Spain’s economic solidity and dynamic tourism sector. He mentioned that Mexican capital’s interest in Spain remains strong due to the country’s robust economic growth, with expected GDP growth nearly doubling the Eurozone average by 2025. Additionally, Spain’s thriving tourism sector, which welcomed 94 million visitors in 2024 and is projected to surpass 98 million in 2025, further supports this interest.
Notable Mexican Investments in Spain
Among the prominent Mexican investments are the acquisitions of Four Seasons Formentor in the Balearic Islands and Rosewood Villamagna and Bless Velázquez hotels in Madrid, showcasing the interest in high-tier and high-performing assets.
Hotel Sector: The Most Dynamic Segment
CBRE data indicates that the hotel sector accounts for €709 million, or 40% of total Latin American investment in Iberia over the past five years. This segment has proven to be one of the most profitable, thanks to the recovery in tourism and stability in long-term returns.
Economic Stability in Spain and Portugal
Spain currently ranks second among European destinations with the highest real estate investment expectations, while Portugal is in sixth place, both showing progress compared to the previous year.
In 2024, Spain’s GDP grew by 3.2%, and Portugal’s by 1.9%, both figures surpassing the Eurozone average. CBRE forecasts sustained growth of 2.3% in Spain and 2.2% in Portugal over the next two years, solidifying the region as a stable and lucrative market for global investment.
Key Questions and Answers
- What is driving Latin American investment in Iberia? The primary motivation is diversifying portfolios and seeking opportunities in the Iberian real estate market.
- Which countries are leading Latin American investments in Iberia? Mexico, Colombia, Argentina, and Brazil are actively participating in this market.
- Why is Mexico a significant player in Spain’s real estate sector? Mexican capital accounts for 56% of the flows entering the Spanish market, making it a key player in numerous significant operations.
- What factors make Spain an attractive destination for Latin American investors? The country’s economic solidity, dynamic tourism sector, and robust GDP growth contribute to its appeal.
- What notable investments have Mexican capital made in Spain’s real estate sector? Mexican investors have acquired high-tier assets such as Four Seasons Formentor, Rosewood Villamagna, and Bless Velázquez hotels.
- Which segment of the Iberian real estate market is most profitable for Latin American investors? The hotel sector, accounting for 40% of total investment, has proven to be one of the most profitable due to tourism recovery and long-term return stability.
- How do Spain and Portugal’s economic prospects compare to the Eurozone average? Both countries have shown higher GDP growth rates compared to the Eurozone average, with sustained growth expected in the coming years.
