Living consolidates its position as the asset class of choice for investors for the first time in Europe

In 2024, the Living sector solidified its position as the preferred asset type for investors, both in Spain and, for the first time, in Europe. At the start of 2025, with over 1.13 billion euros transacted, it captured 35% of the total investment in the country, tripling the figure from the same period last year. Based on our European Investor Intentions Survey report, we expect it to maintain its position as the first asset class for the rest of the year.

Despite the uncertain context generated by the international environment, Spain continues to show robust growth and is consolidating its position as one of Europe's most dynamic economies this year.

Living stands out as the most attractive sector for real estate financing, both from banks and alternative lenders.

The integration of ESG criteria, industrialized construction, and digitalization, with AI as a driving force, are trends acting as key levers to improve asset efficiency. Furthermore, building transformation, with over 140 conversions to Living in the last decade, is emerging as an effective solution to address structural challenges arising from the scarcity of residential supply and land in certain locations.

New Residential Needs

The current demographic landscape, along with the transformation in household structure and dynamics, is redefining residential needs at all stages of the life cycle. From young people seeking independence to other generations requiring solutions adapted to new forms of cohabitation, all groups are demanding more affordable, flexible, and service-equipped housing. However, it is the younger generations who are most intensely suffering the consequences of an increasingly inaccessible residential market in our country.

A Diversified Sector Offering Different Investment Opportunities for Every Way of Living

Growing institutional interest in rental residential (BTR / PRS) has increased the proportion of the stock held by these players to 8%, with over 40,000 new homes projected by 2027. Although Multifamily continues to be the segment that concentrates the most investment within Living, activity has moderated due to the scarcity and high cost of residential land, as well as rising construction and financing costs. In this context, institutional investors are focusing their strategy on affordable products, attracted by their stable cash flows, high occupancy, and competitive yields, while also showing increasing interest in opportunities offered by privatization strategies.

Meanwhile, the residential sales market reached record figures in 2024, positioning it in an expansive phase, a trend expected to continue in 2025. In parallel, the Spanish market has consolidated its appeal in the Branded & Luxury segment, driven by the professionalization of the sector and increasing international interest in premium locations, which will continue to reinforce upward price pressure and consolidate Spain as a global reference destination.