Introduction
Spain has emerged as an attractive destination for Latin American investors interested in real estate, seeking attractive returns, strategic opportunities, and financial diversification amidst a global economic uncertainty.
Investment Growth
According to data from consultancy CBRE, between 2019 and 2024, Latin American population invested €1.7 trillion in the Spanish real estate sector.
In the past year alone, capital originating from Latin America’s participation in total European real estate investment grew by 3.7% annually, the highest rate recorded to date.
Experts’ Insights
Luis Llaca, Director of Cross Border Spain-Mexico at CBRE, commented: “The significant rise of Spain as the leading European economy in Gross Domestic Product (GDP) growth has caught the attention of Latin American investors.”
Mariano Capellino, General Director of Inmsa Real Estate Investments, explained that a global phenomenon of shifting investments from the United States to Europe occurred in 2024 due to perceived economic and political stability in the Old Continent compared to other regions.
“As trade and political tensions have affected the predictability of markets elsewhere, many investors seek refuge in Europe’s relative stability. Additionally, portfolio diversification is a crucial factor in investors’ decision-making,” Capellino added.
Capellino also highlighted that Spanish banks and auctions offer properties with discounts ranging from 20% to 30% below their current market value. This is due to numerous assets being foreclosed or already under the control of banks or lenders looking to divest.
Mexico and Brazil Lead Investments
Between 2019 and 2024, Mexico and Brazil solidified their positions as the leading Latin American players in Spain’s real estate sector, investing €1.003 billion and €340 million, respectively.
These amounts account for nearly three-quarters of the total transactions during this period.
Although Argentina reduced its activity in 2024, it remains a relevant country for the industry with an accumulated investment of €287 million.
Preferred Real Estate Sectors
According to the report, the hotel sector attracted the largest capital volume with €709 million.
The office sector followed closely, with €550 million, resulting from three large-scale operations.
Commercial properties and the living segment accumulated €321 million and €179 million in investments, respectively.
Future Outlook
“The future of Latin American investment in Spain appears promising, with sustained growth and a clear preference for strategic sectors. The combination of a favorable environment and diversified investment origins suggests that this capital flow will continue to strengthen in the coming years,” according to CBRE’s report.
Key Questions and Answers
- What makes Spain an attractive destination for Latin American real estate investors? Spain’s strong economic growth, perceived stability, and strategic real estate opportunities have drawn Latin American investors.
- Which countries are the main contributors to real estate investments in Spain? Mexico and Brazil are the leading Latin American countries investing in Spain’s real estate sector.
- What are the preferred real estate sectors for Latin American investors in Spain? The hotel and office sectors are the most popular, with significant investments in these areas.
- What factors are driving the shift of investments from the US to Europe? Economic and political stability, along with portfolio diversification, are key factors influencing this trend.
- What opportunities do Spanish banks’ property sales present for Latin American investors? These sales offer properties at discounts of 20% to 30% below market value, providing attractive investment opportunities.
