Flex Living: a housing solution for Madrid

Renting or buying a home has become a complex feat in many parts of our country. The shortage of supply and the financial inability to buy a home have triggered a series of challenges that the real estate market must face and adapt to. Increased mobility, socio-cultural changes and the rise of single-person households have led to a growing demand for flexible housing solutions.

The viability of Flex Living as a response to the high demand for housing, as well as the interest generated by this type of asset, is reflected in the evolution of investment volumes in Madrid. Investment in this segment has grown exponentially in the last five years, going from 50 million euros in 2021 to 1,079 million euros last year.

The Flex Living Target Market, Students, and Changing Family Dynamics

Madrid has established itself as a vibrant and dynamic city that attracts more than 300,000 new residents a year. The Flex Living is presented as the ideal solution for the first contact with the city, especially among young people. Every year, Madrid welcomes approximately 123,000 students who might be interested in flexible housing models. On the other hand, the target market for Flex Living also includes people who require temporary housing solutions, especially in the context of changing family dynamics. The city registers approximately 12,000 divorces annually, creating a growing need for flexible accommodation. In addition, around 200,000 housing renovations are carried out annually in the capital, which also prompts landlords to look for temporary housing alternatives during these transition periods.

A necessary solution with great potential for the coming years

The Flex Living is presented as part of an effective response to the difficulty of access to housing in Madrid, meeting the needs of a market in transformation. The flow of new residents, young professionals, changes in family structures and the high number of professionals who travel to Madrid for work reasons augur that Flex Living is not only necessary, but also has potential growth for the coming years.

The Flex Living could alleviate some of the pressure on the real estate market and provide alternatives to the new paradigm. The ability to adapt to these new realities will be essential for the future of the real estate market in Madrid.