Southern Europe’s property markets are enjoying a long-overdue moment in the sun. Following years of caution and compressed yields in northern Europe, investors are now turning to Spain and Italy with renewed confidence and conviction.
“Spain and Italy account for more than a third of our AUM,” says Ariadna Nijssen, senior director of investments at Stoneweg. “As we continue to strengthen our platform across southern Europe, we are seeing strong momentum with a clear revival in both the Iberian and the Italian real estate markets in 2025.”
The momentum is a result of different factors. Spain is benefiting from a convergence of macroeconomic and demographic trends that are drawing strong institutional interest, explains George Fraser-Harding, head of pan-European funds, real estate, at Aviva Investors. “Robust GDP growth, rapid urbanisation and population expansion, driven largely by immigration, are reshaping the landscape,” he says.
Felipe Lainez,
