Madrid consolidates its position as the most attractive city in the EU for property investment

PUBLISHED ON

Diciembre 09, 2025

CATEGORY

Real Estate

Madrid has once again been crowned the most attractive city in the EU for investing in the property market. As was the case last year, the Spanish capital ranks highest in continental Europe in the ranking compiled by the consulting firm PwC and the Urban Land Institute (ULI) in their annual report on real estate trends. 

As in the 2025 edition, Madrid ranks second in Europe, surpassed only by London, thanks to the strength of its economy, its good prospects for economic and demographic growth, and its ability to attract liquidity and develop its property market.

These fundamentals place it ahead of Paris, Berlin and Amsterdam, which round out the top five most attractive cities for real estate investment. Both the French and German capitals remain in the same positions as in the previous edition, while the Dutch city moves up one place at the expense of Munich.

The good news for the domestic market is that Barcelona is back on the list of the top 10 European cities for investing in real estate. It has climbed three places in the last 12 months to eighth position, behind Munich (6) and Milan (7), but ahead of Frankfurt (9) and Hamburg (10).

According to the study by PwC and ULI, investors have rewarded the Catalan capital this year for its favourable economic and employment environment and the investment opportunities it offers, with competitive prices compared to other major European cities. However, they assert that local regulations continue to be an obstacle and a challenge for their investments.

In the 2026 ranking, the major players in the real estate sector have focused on the more mature, liquid and economically stable European markets, although they also see interest in other cities such as Lisbon, which drops out of the top 10 and remains in eleventh position, followed by Warsaw, Dublin, Brussels and Copenhagen. The top 20 is completed by Rome, Vienna, Stockholm, Luxembourg and Manchester.

Spain, fourth largest European market

The study also ranks Spain as the fourth largest European market in terms of real estate investment volume over the last four quarters, with around €16 billion.

The United Kingdom remains in the lead with €60 billion, followed by Germany (€40 billion) and France (€24 billion), while below Spain are the Netherlands and Sweden (both with €13 billion) and Italy (€10 billion).

PwC and ULI highlight that the top seven European markets have attracted more than €10 billion in real estate investment and that double-digit growth has become widespread, with Spain leading the most prominent markets (28%) and Germany (27%), compared to a meagre 1% in France, 8% in the United Kingdom and 20% in the Netherlands.