According to Savills’ latest research, Southern Europe is expected to expand faster than the European Union (EU) average, supporting real estate occupier demand and investor sentiment. For 2026, Oxford Economics forecasts Gross Domestic Product (GDP) growth of 2.4 percent for Spain, 2.1 percent for Portugal and 1.8 percent for Greece, compared with an average of 1.0 percent for the EU-27.
In 2025, Spain, Italy, Portugal and Greece saw real estate transaction volumes of €35 billion ($41 billion), an all-time high and 24 percent above 2024 levels. The region’s recent outperformance is increasingly underpinned by structural factors: a deepening investable universe, sustained tourism-led demand, lower ecommerce exposure in retail, and office and logistics dynamics that look more favorable than in several core markets, Savills says.
Energy is an additional differentiator in a more volatile geopolitical backdrop, according to the international real estate adviser. High
