THE BUILD TO RENT MARKET IN SPAIN EXPERIENCES EXPONENTIAL GROWTH IN 2 YEARS
20 May 2024
- More than 11,000 BTR homes available in Spain
- Madrid leads the BTR sector while Andalusia booms
- Catalonia, which falls to fourth place in number of dwellings in BTR with a decrease of 30%
Activum Real Estate Consulting, a leading real estate company, has carried out an analysis of the Build to Rent (BTR) market in Spain. This study provides a comprehensive snapshot of the current BTR landscape, highlighting the trends, key players and investment opportunities in this sector, which has witnessed remarkable growth in the market in recent years.
This new form of real estate investment, which focuses on building homes specifically designed for long-term rental, has seen a significant increase in demand and investment, reflecting a remarkable evolution in housing preferences and market behaviour.
The analysis reveals a significant distribution in the availability of long-term rental housing in Spain. Madrid leads the market with a total of 5,859 dwellings closely followed by Andalusia with 2,484 and the Valencian Community with 1,861.. Catalonia also shows a notable presence with 1,123 dwellings.
Evolution of the Build to Rent market in Spain:
The BTR market in Spain has reached a new milestone with more than 11,000 BTRs in Spain. available dwellings, 27% more than 2022 demonstrating the growing demand for this type of housing in the country.
Source: Activum.es as of 05/2024. Different portals in the real estate sector have been studied to compile this table.
When looking at the distribution of the Build to Rent market in Spain, it is worth noting the leadership of the city of Madrid, which represents an impressive 46% of the total available dwellings, an increase of 115% compared to 2022. In addition, some localities, such as Torrejón de ArdozThe number of BTRs has reached more than 10% of the total BTR supply, demonstrating the expansion and popularity of this type of housing in the region.
At Andalucía has seen an impressive increase from 200 dwellings available in 2022 to the 1,775 currently available. 49% of the available housing is concentrated in Malaga.while Seville represents 26% of BTR's offer.indicating a significant presence in these cities. This rapid growth reflects the region's attractiveness to investors and developers, as well as the growing demand for long-term rental housing in the area.
The Community Valenciana also experiences a solid increase of 46% from 2022, with more than 1,400 BTR dwellings being marketed.The city is consolidating its position as an attractive destination for investment in rental housing. The offer is distributed in a 57% from BTR's offer in Valencia and a 17% in Alicante.reflecting sustained demand and a variety of long-term rental options in the region.
Meanwhile, Catalonia, which falls to fourth place in terms of the number of dwellings in BTR with a decrease of 30%showing a regional adjustment. Nevertheless, it remains a major force in the market, with 1,123 homes available. The city of Barcelona continues to lead the BTR market in Catalonia., with 23% of total available dwellings in this modality. Tarragona follows with 13% of supply, while Badalona and Sants-Montjuic exceed 10% of rental market share.
Price evolution for 1, 2 and 3 bedrooms in only 2 years:
Source: Activum.es as of 05/2024. Different portals in the real estate sector have been studied to compile this table.
When analysing house price developments over the period 2022 to 2024, mixed trends can be observed. In Madridprices have risen sharply. For example, a one-bedroom house with an average price of €820 in 2022 has increased to €1,100 in 2024, representing an increase of 34%. For two-bedroom homes, the price has risen from €1,039 in 2022 to €1,166 in 2024, an increase of 22%. Similarly, three-bedroom homes have also seen an increase, with an average price of €1,478 in 2024 compared to €1,212 in 2022.
In AndalusiaIn the case of two-bedroom dwellings, a slight increase is observed. Two-bedroom homes show an average price of €1,121 in 2024, compared to €1,200 in 2022. For three-bedroom homes, the average price in 2024 is €1,354, compared to €1,250 in 2022.
The situation in the Valencian Community reflects a similar behaviour to that of Madrid, with increases in prices. A one-bedroom house costing €868 in 2022 has increased to €1,005 in 2024, an increase of 16%. For two-bedroom homes, the average price in 2024 is €1,100, compared to €913 in 2022, an increase of 20%. For three-bedroom dwellings, the average price is €1,300 in 2024, compared to €1,013 in 2022, an increase of 28%.
In Catalonia, on the other hand, there are downward variations in prices. For example, a one-bedroom house has an average price of €935 in 2024, compared to €965 in 2022, representing a minimal decrease. For two-bedroom dwellings, the average price in 2024 is €1,239, compared to €1,465 in 2022, a decrease of 15%. For three-bedroom dwellings, the average price is €1,495 in 2024, compared to €1,661 in 2022, a decrease of 10%.
Current players in the Build to Rent market:
Currently, the Build to Rent market in Spain is undergoing a phase of consolidation and maturation, with a greater focus on quality, sustainability and innovation in project development.
Following the analysis carried out by Activum Real Estate Consulting, the distribution of the main players in the BTR market in Spain highlights the predominant position of Vivenio, which has approximately 25% of the total housing available in this modality.. Behind is Be Casa Essentials (Greystar) with 10%, followed by Vivia Homes with 7%. Stay Homes (7%) and Bialto and Rental Homes (Neinor Homes) also stand out with 5% respectively. Lavidda (DeA Capital) has around 4%, while Renturnoga, Skypark Valdebebas (Hines) and AXA Seguros occupy 3% of the market each.
Source: Activum.es as of 05/2024. Different portals in the real estate sector have been studied to compile this table.
Note to the editor: For the purposes of this study, BTR new-build projects with long-stay rentals have been analysed, excluding Living* projects (short- and medium-stay living models).
