Experienced real estate investors are navigating a rapidly evolving landscape in 2025.
In an international masterclass scheduled for October 16, 2025, industry experts will delve into key trends and strategies for investing in residential and commercial real estate across Spain, the United Kingdom, and Dubai.
This article provides a grounded preview, covering regional ownership structures, investment vehicles, tax optimization, market trends, and the broader context of international trade relations and stability – all crucial factors for cross-border investors.
The insights shared here, bolstered by research and data, will help investors make informed decisions and set the stage for the upcoming masterclass.
Ownership Structures and Legal Frameworks by Region
Understanding the legal environment and ownership regulations in each target region is fundamental. Property rights, foreign ownership allowances, and governance frameworks can significantly affect an investment’s security and performance.
Spain: Property Rights and Foreign Ownership
Spain offers strong property rights and has traditionally welcomed foreign investors. Foreign ownership is broadly permitted with no special authorization required. In fact, any foreigner – whether EU or non-EU – can legally buy real estate in Spain without residency, and there are no general restrictions on the type or number of properties that can be acquired. The only procedural requirement is obtaining a tax identification number (NIE) and following the standard purchase process.
Historically, Spain encouraged foreign investment through its Golden Visa program, which granted residency to non-EU buyers of property worth at least €500,000. However, in a recent policy shift to address housing affordability, the government eliminated the real estate route to the Golden Visa as of April 2025, meaning purchasing property no longer confers a residency visa. This change reflects Spain’s effort to prioritize housing for locals amid a housing shortage. Indeed, Spain faces an estimated deficit of 600,000 homes, with supply failing to meet demand in popular areas.
This shortage has prompted even more drastic proposals – for example, Spain’s prime minister in early 2025 proposed banning non-EU foreigners from buying homes solely for speculation and suggested a tax surcharge up to 100% on the Property Transfer Tax (ITP) for non-resident foreign buyers. While it remains to be seen if such measures will be fully implemented, they underscore the importance of understanding Spain’s legal landscape, which is evolving in response to social pressures.
From a governance perspective, investors in Spain often use local holding companies or appoint professional administrators to manage properties, especially when holding multiple units.
Spain’s Horizontal Property Law governs condominiums and homeowner associations, ensuring clear rules for multi-owner buildings. Foreign investors should also be mindful of regional regulations (for instance, some regions introduced rent controls in 2023 for areas classified as “stressed markets”).
Overall, Spain’s legal framework is transparent and underpinned by EU law, offering robust protection of property rights, yet investors must stay abreast of new policies aimed at balancing investment with local housing needs.
United Kingdom: Transparent Title and Regulatory Changes
The United Kingdom has a long-established tradition of secure property rights and has been very open to foreign ownership. No legal restrictions prevent overseas individuals or companies from buying property in the UK, whether residential or commercial.
Foreign buyers enjoy the same property rights as locals – ownership can be freehold or long leasehold – and the UK’s well-developed land registry system ensures transparent title and enforceability. All transactions are registered with HM Land Registry, providing clarity and security of ownership. In recent years, the UK has tightened certain regulations affecting foreign investors to increase transparency and proper taxation. For example, since 2022, any overseas entity acquiring UK real estate must register its ultimate beneficial owners with Companies House (under the Economic Crime Transparency and Enforcement Act 2022).
This registry aims to combat opaque ownership and illicit money flows by making foreign-owned property holdings more transparent. Governance-wise, this means international investors often need to disclose their structures and comply with UK corporate rules if holding property via an entity. While there is no general limitation on foreign purchases, the government ensures foreign investors pay their dues: overseas buyers are subject to all standard property transaction taxes and landlord obligations. Notably, since April 2021 the UK imposes a 2% Stamp Duty Land Tax surcharge on non-UK residents buying residential property.
This is in addition to regular stamp duty rates and any higher rate for second homes, meaning foreign buyers face a higher upfront tax when acquiring property. Moreover, capital gains and rental income from UK property are taxable for non-residents (a change from past years when some foreign owners were exempt). These measures have made the UK’s investment climate more regulated but also fair and stable, reinforcing long-term sustainability. Investors still view the UK as a prime destination due to its rule of law and stable governance – factors reflected in its high ranking (15th globally) in the International Property Rights Index.
Dubai: Freehold Zones and Investor-Friendly Laws
Dubai (UAE) presents a different but highly investor-friendly legal structure. Historically, foreign ownership in Dubai was restricted to certain areas, but over the past two decades the emirate has opened up significantly. Foreigners – whether residents or overseas investors – may acquire freehold ownership in designated areas of Dubai without any ownership time limit or local partner requirement.
Dubai’s government delineated dozens of freehold zones (pursuant to Regulation No. 3 of 2006) where non-UAE nationals can own property outright, with the Land Department issuing title deeds in the owner’s name.
Outside these zones, foreigners can still invest via 99-year leasehold or usufruct rights, but most international investors focus on the freehold communities (such as Dubai Marina, Downtown, Palm Jumeirah, etc.) which offer full ownership and are geared toward expat buyers. Crucially, Dubai imposes no nationality-based quotas or authorizations in the freehold areas – property can be bought, sold, or rented freely, and there is no age limit for ownership.
The legal framework in Dubai is built to instill confidence: the Dubai Land Department and Real Estate Regulatory Agency (RERA) regulate the market, requiring developers to escrow buyer deposits and enforcing transparency in transactions. For governance, many foreign investors choose to purchase via a locally registered company (often in a free zone) for estate planning and ease of management, but it’s not a necessity. Landlords and tenants are governed by clear rental laws (Law No. 26 of 2007 and its amendments), and disputes are handled by the specialized Rent Disputes Settlement Centre.
Additionally, Dubai has established English-language common law courts in the Dubai International Financial Centre (DIFC) that can handle real estate disputes for international investors, providing an extra layer of comfort in a familiar legal setting. In summary, Dubai’s ownership laws have steadily moved toward openness, making it a highly accessible market for global investors. The combination of full foreign ownership rights in many areas, strong contractual enforcement, and proactive regulation positions Dubai as a jurisdiction with a solid governance environment for real estate investment.
Investment Vehicles and Return Models
Investors today have a variety of investment vehicles and models to choose from beyond traditional direct property ownership. Each vehicle comes with distinct return profiles, liquidity considerations, and governance structures.
Here we outline the main models and how they apply in Spain, the UK, and Dubai, noting what returns or advantages they offer:
- Direct Ownership: Buying properties outright remains the most straightforward model. The investor holds title (individually or via a personal/company name) and directly earns rental income and capital appreciation. Return model: returns come from rental yields (after expenses) and any increase in property value over time. Direct ownership grants full control over asset management (allowing value-add improvements or flexible sale timing) but also means concentration of risk and responsibility for day-to-day management. In markets like Spain and the UK, many mid-sized investors hold properties through a local limited company for liability and tax purposes, whereas in Dubai individuals often hold directly since taxes are minimal. Rental yields can vary widely: for instance, average gross yields on residential property are about 5–6% in Spain and the UK (with higher yields in smaller cities or for student housing, for example), and roughly 6–8% in Dubai’s dynamic rental market. Direct owners benefit fully from these yields, but must also budget for maintenance, property management, and vacancy risks.
- REITs (Real Estate Investment Trusts) and Listed Property Funds: REITs are publicly traded vehicles that own and usually actively manage property portfolios. They offer a way to invest in real estate indirectly by buying shares – providing liquidity and diversification for investors without having to buy properties outright. Both the UK and Spain have REIT regimes: the UK’s REIT structure allows qualifying companies (often listed on stock exchanges) to pay no corporate tax on rental profits as long as they distribute at least 90% of income to shareholders, effectively passing through the rental yields as dividends. Spain’s equivalent, known as SOCIMIs, also enjoy a 0% corporate tax rate if they meet requirements and pay out profits, making them very tax-efficient (It’s worth noting that Spain is debating changes to the SOCIMI regime – a proposal to raise their tax rate from 0% to the standard 25% corporate rate has caused concern in late 2024, though as of 2025 the outcome is not finalized.)
REITs in Dubai are fewer but emerging; for example, Emirates REIT (listed on NASDAQ Dubai) invests in UAE properties and offers dividends to investors. Return model: REIT investors gain dividend income (derived from rents collected by the trust) and potential stock price appreciation. Yields for REITs can be comparable to direct ownership yields (minus management fees), and they are an attractive option for those seeking passive income or exposure to large commercial assets like malls or office towers which would be impractical to buy directly. However, REIT share prices can be volatile and are influenced by broader stock market sentiment, not just real estate fundamentals. - Joint Ventures (JVs) and Private Equity Models: Joint ventures involve partnering with other investors or local developers to acquire or develop properties. For cross-border investors, JVs are common when entering a new market – for instance, a foreign investor might team up with a local Spanish developer to build a residential complex, sharing capital, expertise, and returns. These arrangements require clear governance structures (JV agreements detailing decision rights, profit splits, exit mechanisms, etc.) but can leverage complementary strengths. Many mid-sized investors also pool resources in private syndicates or funds, which are essentially
JVs with a fund manager. In all three regions, private real estate funds exist that target opportunistic or value-add projects (for example, a UK fund repurposing old offices into apartments, or a Dubai-based development partnership building new villas). Return model: JVs typically aim for total return in the form of an IRR (internal rate of return) over the project life, combining rental income and a profitable exit (sale or refinance) at project completion. Returns can be higher than core rental yields – often targeting 10–20% IRRs for development JVs – but come with higher risk and less liquidity. For investors, JVs offer a way to participate in larger deals and benefit from local partners’ expertise.
For example, Constantijn van Haeften (Partner at Verhome Group in Spain) notes that foreign investors in Spanish projects often seek local partners who “ensure every step of the purchase or development is handled with expertise, transparency, and care,” highlighting the importance of reliable partnerships in JVs. - Real Estate Crowdfunding and Tokenization: A newer model enabled by fintech is crowdfunding platforms where investors can buy fractional shares or units of a property or portfolio online. This model has grown rapidly in recent years – the global real estate crowdfunding market, while still relatively small, is projected to expand from just over $12 billion in 2023 to roughly $349 billion by 2032 (45%+ CAGR).
Platforms in Europe (including Spain and the UK) allow individuals to invest as little as a few hundred euros in properties, pooling funds with others to purchase a building or provide a developer loan. In Dubai, where property prices are high, crowdfunding and even blockchain-based tokenization of real estate have started to appear, enabling small-scale investors to get exposure to Dubai assets. - Return model: These investments can offer passive income or fixed interest (for debt-type crowdfunding) and a share of capital gains. For example, an investor might crowdfund a share of a rental building and receive proportional rental income monthly. Crowdfunding can democratize real estate investment and allow diversification across many properties with modest capital. However, it introduces platform risk (choosing a reputable platform is crucial) and typically has low liquidity (you might only exit by selling your stake on a secondary marketplace if available).
Given the audience of seasoned investors, crowdfunding might be less common for those who already own 5–50 properties, but it represents an innovative avenue for portfolio diversification or for raising capital for new projects.
Each of these vehicles can play a role in a strategic investment plan.
Often, investors will combine approaches – for instance, directly owning some core rentals for steady income, while allocating some funds to a REIT for liquidity and a JV for higher-growth potential. The return models range from stable income (rent or dividends) to growth (development gains or share price appreciation), and a balanced portfolio can harness both. Selecting the right vehicle also depends on tax considerations, which we explore next.
Fiscal Optimization and Tax Structures for Foreign Investors
Cross-border investors must plan carefully for tax efficiency, as taxation can significantly impact net returns. Spain, the UK, and Dubai have very different tax regimes, and savvy investors structure their holdings to minimize double taxation and take advantage of any incentives or treaties.
Below, we break down key tax factors and optimization strategies per region:
Spain: Tax Considerations and Optimizations
In Spain, foreign investors are subject to Non-Resident Income Tax (NRIT) on Spanish rental income and capital gains. Rental income earned by non-residents is generally taxed at 24% on the gross rent (with no deductions) if the owner is a non-EU/EEA resident. For EU/EEA tax residents, a reduced 19% rate applies and expenses (maintenance, interest, etc.) can be deducted, aligning the treatment closer to that of residents.
This means EU-based investors often have a tax advantage over other foreign landlords. To optimize, some non-EU investors structure their purchase through a EU-based company or partner with EU investors so that the rental stream is taxed more favorably. Additionally, Spain imposes a capital gains tax for non-residents when selling property (generally 19% for EU sellers, 24% for others). A 3% withholding on the sale price is applied at closing as an advance payment towards the capital gains tax for non-resident sellers, to ensure tax compliance.
Spain does not levy an annual property ownership tax at the national level beyond local rates (IBI – a municipal property tax). However, high-net-worth individuals should note that if they become Spanish tax residents, global assets (including foreign real estate) could attract wealth tax, and Spain’s inheritance tax can also affect property passed to heirs (with varying rules by region). Many foreign owners therefore remain non-resident or use holding companies to isolate Spanish assets. One common structure, for larger investments, is using a Spanish corporate entity (SL or SA) to hold properties; the company pays Corporate Income Tax on net rental profits (at 25%), but this allows full deduction of expenses and interest, which can be advantageous if the property yield is low or highly leveraged.
With careful planning, corporate structures can also facilitate easier sale of the property (by selling the company shares, potentially utilizing tax treaty provisions to avoid Spanish capital gains tax). A major optimization avenue in Spain is the SOCIMI regime – essentially the Spanish REIT. SOCIMIs pay 0% corporate tax on rental income and gains, provided they distribute 80% of profits as dividends and meet listing requirements. While initially intended for large, listed firms, even mid-sized investors have sometimes pooled assets into a SOCIMI to benefit from tax exemption (dividends then get taxed in the investor’s home country, often at a favorable treaty rate). It should be noted, though, that proposed tax reforms might end the 0% rate and impose a 25% tax on SOCIMIs, which underscores that strategies need to adapt to legal changes.
Finally, foreign investors should utilize double taxation treaties.
Spain has tax treaties with the UK, UAE, and many other nations, which generally allow a credit in the investor’s home country for taxes paid in Spain, avoiding true double taxation. For example, a UK investor can credit Spanish NRIT paid on rentals against UK tax on the same income (though since UK rental income of non-residents isn’t taxed if they’re non-UK resident, it might not apply).
For UAE-based investors, the UAE has no income tax, but Spain’s taxes would apply – however, interestingly, Spain and the UAE have a bilateral investment treaty that can protect against discriminatory treatment.
In summary, fiscal optimization in Spain revolves around leveraging lower EU tax rates, considering REIT structures, deducting expenses through corporate entities, and timing purchases/sales (e.g. holding the property at least one year to reduce certain taxes or selling when currency rates are favorable). Engaging a Spanish tax advisor (many specialize in foreign clients) is highly recommended to navigate annual filing requirements and identify regional tax incentives (like certain deductions if investing in specific redevelopment zones or using funds to renovate properties, etc.).
United Kingdom: Tax Considerations and Optimizations
The UK has overhauled its real estate tax landscape in the past decade, particularly affecting foreign investors. As of 2025, foreign owners pay largely the same taxes on property transactions and income as locals, with a few surcharges aimed at non-residents and corporate owners. Key taxes include Stamp Duty Land Tax (SDLT) on purchases, income tax on rental profits, and Capital Gains Tax (CGT) on disposals, plus inheritance tax considerations. For acquisitions, England and Northern Ireland levy SDLT on a sliding scale; foreign buyers (non-UK residents) pay a 2% surcharge on top of standard rates.
This means, for example, a non-resident buying a £1 million London property as a second home could pay 17% SDLT (combining standard, second-home, and non-resident surcharges). Some reliefs exist – notably, if a non-resident subsequently spends substantial time in the UK (183+ days in a year), they may reclaim the 2% surcharge. Also, certain collective investment structures (like qualifying real estate funds or UK REITs) are exempt from the 2% foreign surcharge.
This incentivizes using such vehicles or investing via funds rather than direct purchases for some investors. Rental income from UK property is subject to income tax. Non-resident landlords must register for the Non-Resident Landlord Scheme, where either tax is deducted by the tenant/agent or the landlord receives gross rent and files UK tax returns. Net rental income (after deducting allowable expenses, including mortgage interest for companies, though individuals’ mortgage interest relief is now limited) is taxed at 20% basic, 40% higher, or 45% additional rate, depending on the income level (mirroring resident rates).
Many foreign investors set up a UK private limited company (SPV) to hold properties, as companies pay a flat 25% corporation tax on net profits (from April 2023 onward), and can still deduct full financing costs – this can be more efficient for larger portfolios. However, one must weigh this against the Annual Tax on Enveloped Dwellings (ATED): foreign companies owning UK residential property valued above £500,000 face an annual charge (ranging from ~£4,000 to over £269,000 for £20m+ properties) unless the property is rented out on a commercial basis or other exemptions apply.
Most genuine rental businesses are exempt from ATED, but a corporate holding a personal-use residence would incur ATED. Capital gains: since 2015 (for residential) and 2019 (for commercial), non-residents are liable for UK CGT on the sale of UK property. The rate is 28% (for residential property if a higher-rate taxpayer) or 20% (for commercial or if in basic tax band). Importantly, if the property is held via an overseas company, the sale of the property by that company triggers CGT, and even selling the shares of a property-rich company can trigger UK tax (as the UK now taxes indirect disposals of property companies when the seller owns ≥25% of shares).
Double tax treaties can provide relief; some investors from certain jurisdictions structure holdings via treaty countries that limit UK’s right to tax share sales, though recent treaties and UK rules have closed many loopholes. The bottom line is that foreign investors must plan for UK exit taxes, perhaps by using UK REITs or funds which often are exempt from CGT at the entity level (with investors only taxed on dividends or gains on sale of REIT shares).
Another aspect is inheritance tax (IHT): the UK charges 40% IHT on assets (including real estate) owned by individuals upon death, with only a £325k allowance – and notably, foreign owners are not exempt for UK situs assets. This is a significant consideration for high-value property. Many international investors mitigate this by holding UK property through non-UK companies or trusts (so they own shares, not UK situs assets directly) – though recent rules have tried to look through offshore entities for IHT purposes as well.
Life insurance or family limited partnerships are other tools used to plan for this liability. In terms of incentives, the UK doesn’t offer “golden visas” anymore (that Tier 1 Investor visa was closed in 2022 amid security concerns), so purely fiscal lures for property investment are limited. However, for commercial real estate, there are some attractive points: no VAT is charged on residential rents, and commercial property purchases can often recover VAT; also, certain regeneration areas offer tax reliefs (e.g. capital allowances for investing in building conversions or enterprise zones). Optimizing UK investment often means: use a tax-efficient vehicle (personal vs company ownership decision), ensure mortgage financing is structured to maximize deductions, be aware of SDLT planning (like buying multiple dwellings together can qualify for a “multiple dwellings relief” reducing tax), and utilize treaties (e.g. UAE-UK treaty allows UAE residents to avoid UK tax on UK dividends, relevant if investing via UK REITs).
Given the complexity, professional tax advice in both UK and home country is essential to legitimately minimize the tax burden while complying with all transparency requirements the UK now enforces.
Dubai: Tax Considerations and Optimizations
Dubai’s fiscal regime is one of the most investor-friendly in the world – a major reason it attracts international real estate capital. The UAE (of which Dubai is a member emirate) imposes no personal income tax, no capital gains tax, and no recurring property tax on individuals.
This means rental income and property sale profits are generally tax-free for the investor, and properties are not subject to annual municipal rates or property levies (unlike many countries which have yearly property taxes). Investors can thus enjoy full gross yields; for instance, a 7% rental yield in Dubai is essentially a 7% net yield from a tax perspective – a stark contrast to high-tax jurisdictions.
There are, however, a few taxes/fees to be aware of in Dubai’s real estate transactions.
Property transfer fee: Dubai charges a one-time transfer fee of 4% of the property value (usually split between buyer and seller) upon sale. This functions somewhat like a stamp duty but at a flat percentage. Additionally, new property purchases from developers typically incur a 4% registration fee. These are transaction costs rather than recurring taxes. VAT: The UAE has a 5% Value Added Tax, but in real estate it applies mainly to commercial property sales and leases (5% VAT on those) and to the sale of new residential units by developers (5% on the first sale of a property that is not the first supply within 3 years).
However, resale of residential property and residential rental are generally exempt from VAT. Notably, the UAE introduced a federal corporate tax (CT) of 9% effective June 2023 on business profits, but real estate investments often fall outside its scope if held in a personal capacity. If an investor owns property through a company that is considered a business, that company might eventually be subject to the 9% CT on its net rental earnings (with the possibility of exemptions if the income is from investment rather than a trading business).
Many investors continue to hold Dubai property in personal name or passive holding entities to sidestep this, as the law currently exempts investment income like dividends and capital gains from CT in many cases. Dubai also has no withholding taxes, and it has been signing tax treaties (over 100) which can offer additional comfort to foreign investors that their income won’t be taxed twice (though since UAE doesn’t tax, it mostly helps UAE nationals investing abroad). Because onshore taxation is minimal, fiscal optimization in Dubai is more about reducing costs and maximizing returns rather than tax avoidance.
One key aspect is financing: there is no mortgage interest tax relief needed (since no income tax), but investors still consider using leverage carefully to boost ROI given the interest rates. Also, investors from countries that do tax worldwide income (like the US or UK domiciled persons) often use the UAE’s no-tax environment as a benefit only if they change tax residency. For example, a European investor who remains tax-resident in their high-tax home country might still owe tax on Dubai rental income back home (though many countries have territorial or exemption methods; one must check specific home country rules).
To truly capitalize on Dubai’s tax haven status, many become UAE residents (Dubai offers long-term investor visas when purchasing property above certain thresholds) – this can potentially eliminate home country taxes if one shifts residency. Dubai’s inheritance framework is also unique: while the UAE has no inheritance tax, inheritance of property by foreigners can be complex under local laws (Islamic Sharia law principles apply by default).
To mitigate this, Dubai allows non-Muslim expats to register a will with the DIFC Wills Service to choose their home country succession law. Structuring ownership via a free zone company or a trust can also ensure a smooth succession and potentially avoid forced-heirship rules. In essence, Dubai offers a near “tax-free” real estate investment environment, so optimization mainly involves legal structuring for estate planning or aligning with one’s domestic tax situation.
Investors should factor in transaction fees, and possibly homeowners’ association fees and maintenance, but these are operational costs, not government taxes. The absence of property and income taxes significantly boosts the effective yield of Dubai investments – a fact often highlighted by experts like Asos Harsin, who cites favorable tax conditions and robust growth as key reasons global investors view Dubai as a “sanctuary for stability and returns” in an era of higher taxes elsewhere.
Trends in Residential Real Estate Markets
The residential real estate sector in 2025 is shaped by a mix of high demand, constrained supply in some regions, and shifting living patterns. We focus on trends in Spain, the UK, and Dubai – each experiencing unique drivers in their housing markets:
Soaring Demand vs. Housing Shortages
Spain: Spain’s residential market is experiencing strong demand, especially in urban centers and popular coastal areas, but supply has not kept up. The country has an estimated shortage of 600,000 homes as of mid-decade. This housing deficit is partly a legacy of the post-2008 construction slump and more recent surges in demand.
Major cities like Madrid and Barcelona, as well as the Mediterranean coast (e.g., Costa del Sol), see high interest from both locals and foreign buyers, which drives prices upward. The shortage has also led to new government interventions – for example, rent controls in some regions and the aforementioned proposal to restrict non-resident buyers in extreme cases – as policymakers respond to affordability concerns.
Nonetheless, Spain’s appeal remains high; it offers relatively affordable prices (compared to much of Western Europe) and attractive rental income potential, especially in tourist areas where short-term rentals yield good returns. Rental yields in Spain average around 5–6% gross nationwide, with cities like Valencia or Seville often yielding more than Madrid or Barcelona.
Investors are capitalizing on the chronic undersupply by developing new build-to-rent projects and renovating older units for the rental market, a trend supported by strong tenant demand (Spain’s homeownership rate, while high, is slowly dipping as younger generations rent longer).
In tourist destinations, the resurgence of travel has boosted the vacation rental market in 2023–2025, although regulations on Airbnb-type rentals are tightening in some cities.
United Kingdom: The UK faces a severe housing shortage as well. Studies indicate a backlog of over 4.3 million homes missing from the market that should have been built to meet population growth.
This undersupply is especially acute in London and the South East, but it’s felt countrywide, resulting in record-high rents and house prices relative to incomes. The government’s target of building 300,000 homes per year remains unmet (recent years achieved ~200–240k at best), which suggests that the imbalance will persist. For investors, this scenario of high demand and limited supply has meant low vacancy and rising rents in the rental sector – a boon for rental yields, though offset somewhat by high purchase prices. Rental yields in the UK average around 6% (gross) nationwide, with variations: London’s expensive market historically had yields in the 3–5% range, but interestingly recent data show yields improving (London average ~5.8% in 2024) as rents have climbed sharply.
Outside London, cities like Manchester, Birmingham, or regional towns often see yields in the 6–8% range, attracting investors to diversify across geographies. A notable trend is the growth of the Build-to-Rent (BTR) sector – institutional investors developing large rental apartment blocks, particularly in regional city centers, to cater to rental demand. This is professionalizing the rental market and providing competition (or partnership opportunities) for private landlords.
On the demand side, urban living remains strong; even with some pandemic-era migration to suburbs, young professionals continue to flock to cities for work opportunities, meaning rental demand in urban cores is robust.
However, the UK’s cost-of-living crisis and higher interest rates in 2024/2025 have tempered price growth – in some areas, house prices have stalled or dipped slightly, even as rents keep rising due to mortgage costs pushing would-be buyers to remain renters. For medium portfolio investors, this environment presents both the challenge of higher financing costs and the opportunity of higher rents – making yield management and property selection (favoring high-demand rental locations) key.
Dubai: Dubai’s residential market is characterized by surging demand bolstered by population growth. The emirate has seen a significant influx of expatriates, high-net-worth individuals, and remote workers in the aftermath of the pandemic, drawn by Dubai’s open economy and safe haven status. As a result, Dubai’s population jumped by roughly 3.7% in 2024 alone (adding ~132,000 residents), and continues to grow.
This demographic boom, combined with Dubai’s push to attract talent with new visas and business opportunities, has driven housing demand to record levels. 2024 marked an all-time high in property transactions – over 180,000 real estate deals in Dubai (a 36% increase from 2023)– reflecting frenetic activity. Residential property prices have risen steeply (around 20% annual price growth in 2023-24 on average, especially in villa communities and prime apartment districts, as buyers compete for limited existing stock.
Despite Dubai’s history of rapid construction, the supply pipeline is being outpaced by current demand in prime segments; that said, developers have ramped up project launches again, which means more new units will come to market in coming years. Rental yields in Dubai remain high by global standards – averaging ~7% gross in late 2024 – although in some ultra-prime areas yields have compressed due to soaring prices.
A trend of note is the luxury and ultra-luxury segment boom: wealthy investors from around the world (including those fleeing economic uncertainty in their home countries) have snapped up Dubai’s high-end homes, setting price records in 2025. This has a trickle-down effect, pushing mid-tier buyers to peripheral communities, which in turn pushes development outward (new master-planned suburban areas are growing).
Additionally, Dubai’s government initiatives such as 10-year Golden Visas for property investors (above certain thresholds) and 100% foreign business ownership reforms have enhanced the emirate’s appeal as a long-term base, spurring end-user demand alongside pure investment demand. Overall, the residential trend in Dubai is one of strong growth and confidence – with the caveat that Dubai’s market is more cyclical and supply-responsive than the UK or Spain. Investors are keeping an eye on the supply pipeline to avoid an oversupply situation like the mid-2010s, but for now, demand outstrips supply in most segments, keeping vacancy rates low and rents rising.
Evolving Living Preferences and Urban Dynamics
Across all three regions, urbanization and lifestyle changes are influencing residential real estate. City centers remain key hubs, but the pandemic catalyzed some shifts: in the UK and Spain, there was a temporary move toward suburban or rural living; however, by 2024–2025, many urban markets have rebounded as people return for work, education, and culture.
Flexible work arrangements have increased demand for larger homes or those with home office space – a trend visible in higher interest for villas in Dubai or houses with gardens in the UK. At the same time, central apartments have not lost their allure, evidenced by low city vacancy rates (e.g., Madrid’s residential vacancy is very low, often under 5% in desirable districts, and London’s rental vacancy around 1-2% in 2023/24).
Another notable trend is the rise of co-living and “flex living” concepts, particularly in major cities. Co-living spaces (with individual rooms and shared amenities, appealing to young professionals) are emerging in London, and similar models are seen in Dubai (serviced communal apartments) and Spain (especially in tech hubs like Barcelona). This reflects both affordability challenges (young renters finding creative solutions) and lifestyle preferences for community and flexibility.
Sustainability is also becoming a factor in residential demand. Energy-efficient homes and “green buildings” are commanding premiums or renting faster, especially in Europe where energy costs are high. Spain, for example, has introduced incentives for eco-renovations (which investors can utilize to both improve rentability and get tax credits).
The UK’s move toward minimum energy efficiency standards for rentals means investors need to retrofit properties (or focus on newer builds) to ensure compliance and attractiveness to tenants who value lower utility bills. In Dubai, developers are increasingly marketing sustainability features (solar panels, green building certifications) as the market matures and global ESG-minded investors take interest.
In summary, the residential real estate trends point toward strong rental markets due to supply shortages, shifting tenant expectations (flexibility, amenities, efficiency), and the resilience of urban demand. Investors who adapt – by perhaps investing in development to add supply, upgrading units to meet new standards, or targeting emerging high-demand niches – stand to gain solid returns.
As Bianca van den Berg, a real estate investment specialist, observes, “rental housing has become an asset class on its own, with professional management and international capital driving improvements – but it’s still the local market fundamentals of supply and demand that make or break the investment.” Her advice underscores that despite global trends, each locale (be it a city in Spain, a borough of London, or a district in Dubai) has micro-dynamics that astute investors must analyze.
Trends in Commercial Real Estate Markets
The commercial real estate sector (offices, retail, industrial, and mixed-use developments) is undergoing transformative trends in 2025. Here we focus on offices, retail, and mixed-use developments in our regions of interest, as these are most relevant to diversified property investors:
Office Market: Hybrid Work and “Flight to Quality”
Global Context: The rise of remote and hybrid work since 2020 has left a lasting impact on office markets worldwide. Many companies downsized their office footprints or reconfigured space to accommodate flexible schedules. In top business cities like London, this led to elevated vacancy rates in older office stock. In early 2024, the City of London’s office vacancy hit around 12% – significantly higher than pre-pandemic levels – though by Q1 2025 there were signs of stabilization (vacancy edging down slightly as some firms expanded offices to bring staff back.
United Kingdom: In London and regional UK cities, a clear trend is “flight to quality” – tenants are gravitating to high-quality, modern offices with better ventilation, amenities, and sustainability credentials, while older Grade B offices struggle to attract demand. This bifurcation means newer office buildings in prime locations are maintaining lower vacancy and even seeing rent growth, whereas outdated offices face obsolescence unless repurposed.
According to market reports, prime office yields have moved out slightly (reflecting softer values), but remain relatively low (around 4-5% in London) given investor demand for the best properties, whereas secondary office yields have risen, reflecting higher risk. Some secondary offices are being converted to residential or mixed-use (an opportunity for investors/developers adept at repositioning assets). In regional cities like Manchester or Birmingham, offices are also adapting – tech firms and government departments have driven demand for modern spaces, while older offices in oversupplied areas may be candidates for redevelopment.
Overall, the UK office market in 2025 is cautious: investors are selective, favoring buildings with strong ESG (environmental, social, governance) credentials and flexible layouts. There’s also a trend of shorter lease terms and more tenant break options as companies seek agility. For investors, this means underwriting office investments with realistic vacancy and capex assumptions, and possibly focusing on niche segments like life-science labs or co-working spaces which are growth areas.
Spain: The office markets in Madrid and Barcelona have been relatively resilient. Vacancy in Madrid’s office sector fell below 10% by 2024 as the economy recovered, hovering around 9–10% vacancy overall (with prime CBD areas much tighter). Similar to London, there is a flight to quality – multinational companies in Spain are leasing energy-efficient, well-located offices to entice workers back on-site. Spanish developers have been active in upgrading office stock, and there’s a pipeline of new office projects in Madrid’s northern business districts and Barcelona’s 22@ tech district.
Rents for grade A offices have held firm or risen slightly in those markets. However, secondary locations or aging office buildings in Spain face higher vacancy and some are being eyed for conversions to residential/hospitality (especially in Barcelona, where there’s demand for housing and hotels).
Investors in Spanish offices are also influenced by Spain’s recovering economy and job growth in sectors like IT and consulting, which boost office occupancy. Notably, the co-working trend is growing in Spain; both international and local co-working operators have expanded, consuming significant office floor space under management agreements – this provides flexibility for companies and effectively turns some leases into service agreements. For an investor, partnering with a co-working operator or designing offices to be flexible can be a plus.
Dubai: Dubai’s office market is on an upswing, bucking the global softening trend. With businesses flocking to Dubai (new startups, crypto firms, multinational relocations), demand for office space has surged. In 2024, prime office vacancies in Dubai dropped and rents in top-grade buildings jumped by double digits.
Free zones like DIFC (financial center) and DMCC (commodities center) reported near full occupancy. The city’s reputation as a business hub in the Middle East – and its handling of pandemic (staying open, attracting remote workers) – resulted in many firms opening offices or moving regional HQs to Dubai. Prime office yields in Dubai are relatively high (around 6.5–7% expected in 2024–25) compared to global financial centers, which draws investor interest.
New office supply is limited (developers focused on residential in the past decade), so the constrained Grade A supply is a boon for landlords. Some older offices in secondary areas still have high vacancy, but rather than remote work, a lot of that is structural oversupply or preference for better locations. Going forward, Dubai is actually seeing a mini-boom in office construction again, as developers respond to the tight market – however, any new supply will likely be quickly absorbed if economic growth continues.
For investors, Dubai’s office sector offers strong income but one must carefully select properties that cater to what modern tenants want (tech infrastructure, parking, prestige address). Lease lengths in Dubai tend to be shorter (often 1-3 years for private sector), which allows faster repricing in an upmarket, but also means exposure to vacancy risk if the economy turns. In summary, office real estate trends can be summed up as adaptive reuse and quality focus in mature markets, and growth and tightening in Dubai. Investors are rethinking office assets in their portfolio – perhaps reducing exposure to weaker offices while doubling down on prime, or repurposing buildings into alternate uses where feasible.
Retail Market: E-commerce Impact and Experiential Shift
United Kingdom: The UK retail sector has been in flux, challenged by the rise of e-commerce and changing consumer habits. The fallout is evident: the overall retail (and leisure) property vacancy rate was around 14% in late 2024, significantly higher than historical norms. High streets have seen many store closures – about 170,000 retail jobs were lost in 2024 alone as some big chains and small shops folded under pressure. However, within retail, there are divergent trends.
Retail parks (open-air shopping centers often with big-box stores) have performed relatively well – their vacancy in the UK is much lower (~7.5%) – partly because they cater to convenient “click-and-collect” and offer ample parking, which appealed during and after the pandemic. Shopping malls and some high streets, especially in smaller towns, suffered more with vacancies exceeding 17%.
Investors have responded by repurposing some retail spaces: turning empty department stores into mixed-use developments with residential or offices, converting malls into logistics distribution points, or adding entertainment and food/beverage venues to create destinations rather than just shopping areas.
The future of UK retail is experiential – retailers and landlords are focusing on experiences that online shopping can’t provide. For example, more pop-up stores, showrooms, cafes, and community spaces are appearing on high streets to draw foot traffic. London’s prime retail (e.g., Oxford Street, high-end locales) still sees strong demand (especially from international tourists returning in 2023–25), though even there, landlords are experimenting with flexible leases and turnover-based rents to fill spaces with up-and-coming brands or attractions.
The UK retail investment market has seen repricing; yields for prime retail assets (like dominant malls or food-anchored retail parks) have risen to more attractive levels for investors – but caution is warranted, as the sector is still stabilizing.
A positive note: as inflation moderates and consumer spending recovers, 2025 could mark a bottoming-out for retail real estate, with well-located retail starting to recover in value.
Spain: Spain’s retail sector also faced e-commerce growth (though online retail penetration in Spain is slightly lower than in the UK). Prior to the pandemic, Spain had relatively low shopping center vacancy and a culture of brick-and-mortar shopping, aided by tourism. The pandemic hit retailers hard, but by 2024 Spain saw a rebound in physical retail thanks to renewed tourism (Spain remains one of the world’s top tourist destinations) and locals returning to stores. Prime retail streets in Madrid (Gran Vía, Serrano) and Barcelona (Passeig de Gràcia, Portal de l’Àngel) are once again bustling, with international brands paying high rents for the best spots – these zones have near-zero vacancy.
Secondary high streets in smaller cities, however, are quieter and have seen more closures of legacy retailers. Shopping centres (malls) in Spain have mostly recovered footfall, especially those that have a strong leisure component (cinemas, restaurants).
A trend in Spain is open-air outlet villages and retail parks on city outskirts, which have gained popularity as family weekend destinations. Retail investors in Spain are focusing on either prime urban retail (super-core assets for long-term hold) or value-add opportunities like refurbishing an old mall with new attractions.
There’s also increasing interest in grocery-anchored centers, which are internet-resilient. As in the UK, flexible lease terms and turnover rents are more common now than pre-2020. Overall, Spain’s retail rents are still below pre-crisis peaks in many locations, suggesting room for growth in a sustained economic upswing. For cross-border investors, Spanish retail assets can offer good yields, but the key is picking assets with a clear draw (either prime location, strong tenant mix, or redevelopment potential).
Dubai: Retail is a cornerstone of Dubai’s economy (famed for its mega-malls), and it too has evolved. Dubai’s retail market in 2025 is largely robust, thanks to a booming tourism sector and a growing population of residents with disposable income. Malls like Dubai Mall and Mall of the Emirates continue to enjoy high occupancy; they have transformed into entertainment and lifestyle destinations with attractions (aquariums, ski slope, etc.) that ensure steady footfall beyond just shopping.
That said, e-commerce has made inroads in the UAE (with players like Amazon.ae, Noon), and during COVID, online sales spiked. In response, many retailers adopted omnichannel strategies (buy online, pick up in store) and malls have integrated digital experiences.
A trend in Dubai retail is the development of mixed-use “community malls” within residential districts – these serve everyday needs and dining for local residents and are quite successful when paired with the community’s growth. Another trend: new retail concepts targeting the luxury segment (Dubai has seen an influx of wealthy individuals, and high-end retail is thriving – the city leads in prime retail rental growth globally in some reports).
Retail rents in Dubai’s prime malls have held firm or even increased slightly post-pandemic, and vacancies are low in the top-tier centers. Secondary malls or older shopping centres without unique offerings may struggle more, but many have repurposed sections into offices or clinics, etc. For investors, Dubai’s retail properties can be attractive given no tax on rental income and the allure of strong tourist spending (Dubai had ~17 million international visitors in 2023 and is targeting even more in coming years).
However, one must consider that retail success in Dubai often ties to location and concept; a mall must either be the biggest/best in its area or serve a niche. Investments are flowing into experiential retail – think concepts like Time Out Market (food hall) or immersive art venues in malls – as landlords diversify attractions.
As one Dubai developer aptly put it, “malls here are our public squares,” highlighting that in the extreme climate of the UAE, malls function as community hubs, and that underpins their continued relevance. Mixed-Use Developments: A unifying trend in commercial real estate is the rise of mixed-use projects. Rather than single-use properties, developers and cities are favoring developments that combine residential, office, retail, and leisure components.
This is evident in all three regions:
In the UK, former retail sites or new masterplans often include a mix: for example, a city center redevelopment might incorporate a shopping arcade on the ground floor, offices on lower levels, and apartments or a hotel above.
Mixed-use is seen as a way to make developments more resilient – if one sector faces a downturn (say offices), the residential or retail component can provide stability. London’s Battersea Power Station project is a prime example of a large mixed-use scheme (with homes, offices for tech firms like Apple, and a shopping mall) revitalizing an area.
In Spain, mixed-use is traditional in city centers (ground-floor retail with apartments above), but now new large-scale projects, like Madrid’s Nuevo Norte, are master-planned as mixed-use districts with offices, parks, and homes integrated. Even in tourist resort developments, we see mixes of hotel, retail, and residential to create all-in-one communities.
Dubai has always excelled in mixed-use mega-developments – from Downtown Dubai (blending the Dubai Mall, office towers, hotels, and residential skyscrapers) to newer projects like Dubai Creek Harbour. The trend is continuing with communities that provide “live-work-play” environments. Investors often can buy into a mixed-use complex (e.g., purchase a few retail units and some apartments in the same development), benefiting from the integrated success of the project.
Mixed-use developments respond to urban planning goals of reducing commutes and increasing walkability. They also satisfy modern preferences where people like having amenities at their doorstep. From an investment perspective, mixed-use can offer diversification within a single asset – though it also requires understanding multiple markets (residential vs retail dynamics). As an emerging trend, experts foresee mixed-use designs dominating future city projects.
International Trade Relations and Long-Term Stability for Investors
Cross-border real estate investment doesn’t happen in a vacuum; it’s influenced by international economic relations, geopolitical stability, and the macroeconomic environment. For investors operating in multiple jurisdictions like Spain, the UK, and Dubai, understanding these factors is crucial to assess risk and opportunity.
Cross-Border Capital Flows and Trade Relations
Interconnected Markets: Despite talk of “deglobalisation” in recent years, real estate remains a highly global asset class. Investors from North America, Europe, the Middle East, and Asia are active in each other’s property markets. In fact, over two-thirds of cross-border real estate investment goes into the most transparent and stable markets – places with strong governance, ease of doing business, and rule of law.
The UK and Spain both fall into this category, benefiting from their reputations as secure environments. London has long been a magnet for global capital (from Gulf sovereign funds to Asian insurance firms) seeking a stable haven. Spain, especially its resort and luxury residential markets, has drawn buyers from the UK, Germany, Scandinavia, and increasingly the Middle East and Americas, due to lifestyle appeal and EU market stability.
Dubai, historically a recipient of regional capital (from other Middle East, South Asian, and Russian investors), has become increasingly global – it ranks as a transparent market in the Middle East, and as of 2025 we see a greater variety of nationalities investing there (for example, a rise in European institutional investment, not just individual investors).
Trade Agreements and Investment Treaties: The backdrop of formal trade relations can enhance investment confidence. The UK, post-Brexit, has been pursuing new trade deals – notably with the Gulf Cooperation Council (which includes the UAE). A UK-GCC free trade agreement is under negotiation and expected to bolster economic ties and potentially ease movement of goods and capital. Such a deal could indirectly benefit real estate by fostering greater business travel, expatriate assignments, and bilateral investment between the UK and Gulf states. The UAE itself has been signing Comprehensive Economic Partnership Agreements (CEPA) with countries like India, Indonesia, and looking toward the EU.
These agreements signal Dubai’s intent to integrate further into global trade, which should support its long-term growth and, by extension, real estate demand (e.g., more multinational companies setting up regional HQs, more wealthy individuals relocating). Spain, as part of the EU, enjoys the network of EU trade agreements and investment protections.
For instance, Spanish real estate is supported by intra-EU investment flows (e.g., French or Dutch REITs owning Spanish property face no barriers) and bilateral treaties with non-EU countries for investment protection.
Foreign Investment Policies: As we’ve seen, there is some political pressure in places like Spain to manage foreign real estate investment due to local housing concerns. However, these tend to be balanced approaches rather than broad hostility to foreign capital. In general, Spain and the UK remain very open to foreign investment, with governments actively courting it as part of economic development (the UK regularly publicizes foreign direct investment successes, and Spain’s regions often seek foreign investors for infrastructure and regeneration projects).
The UAE’s policy is overtly welcoming to foreign investors – Dubai continually introduces incentives, such as long-term visas for investors, and in 2022 it even allowed 100% foreign ownership of businesses (removing the old requirement of a local partner in many sectors). All these policy directions aim to provide stability and confidence to investors that their capital will be treated fairly and can be repatriated or exited smoothly.
Political and Economic Stability
Political Stability: Investors naturally gravitate to stable environments. The UK, despite periodic political drama (Brexit, changing Prime Ministers), is fundamentally a stable democracy with strong institutions – property rights are entrenched and the legal system is independent.
Spain has a stable democracy as well; while it had some regional independence tensions (Catalonia) and changing coalition governments, none of these have threatened property ownership rights. The main political risk in Spain is policy shifts like the housing law changes, but those are moderate in scope.
The UAE is not a democracy in the Western sense, but it is very stable politically under its leadership – policy is predictable in its pro-business orientation, and internal security is high. Dubai in particular is often viewed as a neutral safe haven in a volatile region; it has good relations with major powers and has avoided conflicts, making it a refuge for capital during regional crises (as seen when capital flowed in from turbulent areas). This stability, plus low crime and modern infrastructure, is a significant factor for long-term investors (including family offices looking for wealth preservation).
Currency and Economic Stability: Currency fluctuation is an important consideration for cross-border investors. In this context, the UAE dirham’s peg to the US dollar offers stability – investors from dollar-pegged or dollar-based economies face no currency risk in Dubai, while euro or pound investors have some FX exposure to USD.
The UK’s pound sterling is free-floating; it experienced volatility around the Brexit period, but has since stabilized. Still, currency moves can affect an investor’s returns (e.g., a euro investor who bought London property when GBP was low would have gotten a currency gain by 2025 as GBP strengthened).
Spain, using the euro, benefits investors from the eurozone (no currency risk for them) but means USD or GBP-based investors have to consider euro fluctuations. Over the long term, such FX risks can be hedged or mitigated by diversification.
Economically, all three regions have solid outlooks but also face the overarching global factors: inflation and interest rates. Interest rates rose globally in 2022–2024 to combat inflation, impacting real estate through higher mortgage costs and required yields. By 2025, inflation is cooling in many economies (UK and Eurozone inflation has come down from peaks, though is still above targets).
Central banks are expected to stabilize or even slightly reduce interest rates by 2025–2026 if inflation is under control, which would relieve some pressure on real estate financing. For now, investors are adapting by seeking properties with higher income to cover financing costs and by perhaps locking in longer-term fixed rate loans where possible.
One should also consider long-term growth prospects: Spain’s economy is growing moderately and benefits from EU recovery funds (investing in infrastructure, green energy – indirectly positive for real estate development activity).
The UK, outside the EU, is charting its own trade course but London remains a global finance and tech center driving demand for high-end real estate.
Dubai’s economy is forecast to grow strongly, diversifying beyond oil into tourism, finance, and tech; its proactive governance (such as quickly adapting laws to attract crypto firms or remote workers) suggests it will continue to create new real estate demand.
Safe-Haven Investment and Diversification
For international investors, having properties in multiple jurisdictions is itself a diversification strategy to enhance long-term stability of their portfolio. The rationale is that not all markets move in tandem: a downturn in one country might be offset by stability or growth in another. For example, an investor with properties in the UK, Spain, and Dubai might find that while UK values plateau during a high interest rate period, Dubai’s market might be surging due to regional inflows, and Spain’s coastal properties might hold value thanks to limited supply – thus overall portfolio performance is balanced.
Moreover, different markets have different cycle timings; historically, Dubai’s cycles have been shorter and more volatile, whereas the UK’s cycles are longer and more mature, and Spain’s somewhere in between (with significant regional variation).
Real estate is also seen as an inflation hedge and a way to preserve wealth in uncertain times. London and Dubai often pop up as “safe haven” markets when there’s global turmoil. For instance, geopolitical tensions or sanctions led to certain investors shifting money into Dubai property as a secure, liquid asset that is less exposed to their home country’s issues.
Likewise, London’s prime market sees a surge of international buyers whenever there are instability or currency crises abroad (historically attracting wealth from Russia, the Middle East, Asia in different waves).
Spain, while not quite the same safe-haven level, benefits from lifestyle and retirement-driven stability – many foreigners buy in Spain for personal use, which is relatively inelastic to economic swings, providing a stable demand floor. Risk management for long-term stability also involves legal protection.
All three countries discussed have robust legal systems, and bilateral investment treaties (BITs) provide recourse for foreign investors.
The UK has a highly regarded court system often chosen for arbitration of international contracts. Spain, as an EU member, adheres to strong legal standards and investors can also escalate disputes to international arbitration if needed.
The UAE has modernized its legal system and even allows foreign investors to use common-law courts (like the DIFC court) and international arbitration (the UAE is party to the New York Convention, so arbitration awards are enforceable).
This legal infrastructure assures investors that even cross-border, their rights can be enforced – a cornerstone of long-term confidence.
Lastly, macroeconomic stability: Government debt levels, fiscal health, and banking sector strength all matter indirectly. The UK and Spain, as developed economies, have large but manageable debt; while this can influence interest rate policy, they are not seen as unstable. The UAE has low debt and abundant sovereign reserves, giving it flexibility to support the economy if needed (for example, Dubai was bailed out by Abu Dhabi in 2009 and since has kept debt in check relative to GDP).
Banking stability is crucial too – as investors often rely on local banks for mortgages. UK banks are well-capitalized (with stringent stress tests in place after the 2008 crisis). Spanish banks recovered from the early 2010s crisis and are again profitable, though they still carry some legacy real estate exposure. UAE banks are robust and have benefited from the recent economic boom, with lots of liquidity for lending.
None of these countries currently pose systemic financial risks that would scare off property investors; on the contrary, their financial systems support real estate investment (e.g., Spain has been extending more credit for mortgages in 2024, UK banks remain competitive in buy-to-let lending albeit with stricter criteria, and Dubai banks are actively financing development and purchases with innovative products for expats). In conclusion, the international context for investors in Spain, the UK, and Dubai is generally favorable. These markets offer a combination of transparency, legal protection, and growth potential that attract cross-border capital.
While investors must remain vigilant about political changes (like Spain’s housing regulations or UK’s post-Brexit adjustments) and market cycles, the long-term outlook is that real estate in these locations will continue to be underpinned by strong fundamental demand. Diversification across them can yield a resilient portfolio. As the experts in our upcoming masterclass will elaborate, a globally diversified real estate strategy – executed with local market knowledge – can provide both high returns and a hedge against localized downturns, truly capitalizing on the opportunities of an interconnected world.
Expert Insights: Perspectives from Industry Leaders
To provide a practical lens on these topics, we turn to commentary from three expert speakers headlining the October 16, 2025 masterclass – Asos Harsin, Constantijn van Haeften, and Bianca van den Berg – each bringing a wealth of experience in international real estate investment:
Asos Harsin (Co-founder, RAA Investments): Asos Harsin emphasizes the importance of adaptability and due diligence in today’s market. He notes that governance and local expertise can make or break a cross-border investment: “You must respect each market’s nuances – from legal processes to cultural business norms. Our most successful deals were those where we combined global strategy with on-the-ground insights.”
Harsin also highlights sustainability and technology as game-changers. He suggests investors adopt a long-term view, focusing on fundamental trends like urbanization and digital transformation of real estate. In his experience, portfolios that integrated smart property management tech, or assets aligned with sustainability (e.g., green-certified buildings), have not only improved efficiency but also retained higher value.
His overarching message: treat real estate as an active investment. Even if you hold bricks and mortar, you should constantly “audit” your portfolio for improvement – whether it’s refinancing for better terms, retrofitting for energy savings, or repositioning an asset to a higher use. This proactive, informed approach, Harsin argues, is essential to thrive amid the rapid changes in 2025 and beyond.
Constantijn van Haeften (Partner, Verhome Group): With over a decade of experience connecting Dutch and other international investors with Spanish properties, Constantijn van Haeften provides a perspective rooted in the Spanish and wider European real estate scene. He observes that foreign investors are still very keen on Spain – “The allure of the Mediterranean lifestyle, coupled with solid returns, is not fading,” he says – but they need to be smart about structure and compliance. Van Haeften advises paying close attention to tax structure and local partnerships.
For example, he often guides investors on when it’s beneficial to use a Spanish company or REIT structure to optimize taxes and how to leverage local bank financing at low European interest rates to boost returns. He also remarks on the increasing interest from non-traditional sources: investors from the Gulf and Asia are more present in Spain now. “London and Paris were the default, but now Marbella and Málaga are in,” he quips, referencing a trend where younger Middle Eastern investors choose Spanish coastal properties as both investments and vacation havens.
This is happening even as Spain debates foreign buyer taxes – evidence, he suggests, that the draw of quality real estate can overcome political noise. Van Haeften stresses risk management too: diversifying within a market (such as owning a mix of city apartments and holiday villas) and having an exit plan for each investment.
He reminds participants that real estate is not a quick flip in most cases: “Patience and professional management pay off. Some of our clients have held properties through cycles and are now glad they did, as the long-term trajectory is upward.” His take-home point: Spain and similar markets can offer tremendous value and stability if one navigates the system correctly, which often means partnering with local experts and staying abreast of policy changes.
Bianca van den Berg (Real Estate Investment Specialist): Bianca van den Berg brings a global outlook, having managed investment portfolios spanning Europe and the Asia-Pacific. She underscores portfolio strategy and emerging opportunities. Van den Berg is particularly enthusiastic about the blending of traditional real estate with new investment platforms and markets.
She cites how crowdfunding and fractional investment platforms have enabled even mid-sized investors to access projects worldwide: “I’ve seen clients in Europe invest in a commercial development in Singapore via a platform, or Middle Eastern investors take small stakes in a UK housing fund – these digital platforms are breaking down barriers.”
However, she cautions that regardless of the vehicle, sound fundamentals and governance must guide decisions. She also touches on international relations, noting that geopolitical shifts can swiftly redirect capital flows. For instance, she will mention how the easing of travel restrictions and new visa schemes – like Dubai’s remote work visa or golden visas in other countries – create pockets of real estate demand almost overnight (e.g., an influx of remote workers can boost rental demand in Dubai or Lisbon).
Van den Berg advises investors to stay informed about such macro developments: “It’s not just real estate news; it’s reading the financial press, knowing that if country A and country B sign a trade deal, that might mean more executives moving and needing housing.” In her view, the best strategy for 2025 is a balanced portfolio: some core assets in stable markets (like London offices or Amsterdam logistics), some growth assets in emerging hotspots (like Dubai or perhaps secondary cities in fast-growing economies), and liquidity through vehicles like REITs for flexibility.
She will likely end with a call for being “agile and open-minded” – as the real estate landscape broadens with new technologies and global connectivity, investors who learn and adapt will capture the best opportunities.
These expert perspectives reinforce the detailed trends and analysis we’ve discussed. They boil down to a common theme: combining global vision with local execution. Each speaker, in their own way, advocates for informed, adaptive, and responsible investment approaches – whether it’s embracing new models, structuring deals smartly, or aligning with long-term societal trends.
Conclusion and Call-to-Action
The real estate markets in Spain, the UK, and Dubai in 2025 present a rich tapestry of opportunities – from high-yield rental homes and trophy commercial assets to innovative funding models and tax-savvy structures. Key trends like housing shortages, hybrid work’s impact on offices, the rise of mixed-use environments, and cross-border capital flows are redefining how investors strategize.
Successful navigation of this landscape requires not only understanding the facts and figures – such as yields, taxes, and laws (as we’ve detailed with supporting data) – but also insight and foresight to anticipate changes and position one’s portfolio accordingly. As an experienced investor managing 5–50 properties, you likely recognize that continuous learning is part of staying ahead.
The dynamics discussed – whether it’s leveraging a SOCIMI in Spain for tax efficiency, choosing the right freehold area in Dubai, or adjusting a UK portfolio to the post-pandemic economy – all point to the need for up-to-date knowledge and expert guidance.
This is exactly why our International Real Estate Masterclass on October 16, 2025 is an event not to be missed.
In this online webinar, you will have the chance to engage directly with experts like Asos Harsin, Constantijn van Haeften, and Bianca van den Berg, moderaded by Ron van Bloois, chair Sociëteit Vastgoed International, who will delve deeper into these topics, share case studies and personal experiences, and answer your pressing questions.
It’s a unique opportunity to refine your investment strategy with inputs from industry leaders and to network (virtually) with peers who are also operating globally.
Call-to-Action: We invite you to join the masterclass on October 16, 2025 and take your real estate investment acumen to the next level.
By attending, you’ll gain actionable insights into optimizing returns while managing risks across different markets, learn about the latest tools for fiscal optimization, and get an inside look at upcoming trends that could shape the next decade of property investing.
Whether your goal is to maximize rental yield, expand into a new region, or future-proof your portfolio’s governance, this masterclass will equip you with knowledge and confidence.
Secure your spot today (spaces are limited) and prepare to engage with a community of like-minded international investors.
Let’s decode the global real estate landscape together – and ensure that your investments in Spain, the UK, Dubai and beyond thrive in 2025 and well into the future. We look forward to seeing you at the masterclass.
Until then, happy investing!
Claudia van Haeften
Founder Sociëteit Vastgoed
