ECONOMIC CONTEXT
The Spanish economy consolidated its expansionary path during the final quarter of 2025, driven by solid domestic demand and improving macroeconomic indicators. Annual GDP growth stood at around 2.9%, while retail sales increased by 3.3% year-on-year in November. Tourism reached record levels, with 97 million international visitors in 2025, reinforcing footfall and spending in prime retail destinations.
OCCUPANCY MARKET
Despite limited availability in prime locations, leasing activity on high streets remained strong, with vacancy closing the year at 2.7%. Prime areas in Madrid and Barcelona continued to attract the majority of demand, supported by fashion operators and growing interest from food & beverage brands.
Shopping centres and retail parks recorded stable performance, with sales increasing by 1.5% in December and sustained activity throughout 2025. Fashion posted 5.1% growth in Q4, while food & beverage increased by 4.5%, led by fast casual dining formats. The combination of tourism and recovering consumer spending continued to underpin occupier demand across formats.
INVESTMENT
Retail investment remained supported by strong fundamentals and improving investor sentiment. While activity varied across asset classes, prime high street locations and dominant shopping centres continued to attract interest, benefiting from stable occupancy levels and the sector’s strategic exposure to tourism and consumption trends.
