Figures
Living, Market Data - Figures Fourth Quarter 2024 Spain
We analyze the Living market in Spain during the fourth quarter of 2024. Learn about the evolution of the investment market, returns and trends in the residential sector in terms of sales, flex living, Build to rent (BTR and PRS), as well as student residences and senior living.
February 4, 2025 5 Minute Read
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The effort rate to buy a home has improved slightly, standing at 35.3% at the national level, but it is still very high. This scenario faces serious difficulties in accessing housing in Spain, especially in large cities and for young people, and implies a trend of households in an upward rental regime for the coming years.
The residential market has shown great strength in 2024, with 516 thousand homes sold until the third quarter (+9.5% year-on-year), and a price growth of 8.1% in the last year, with new construction (+9.8%) standing out, compared to second-hand (+7.9%). The shortage of supply remains the main challenge facing the sector.
The Living sector was positioned as the preferred asset type for investors in Spain and Europe in 2024. With more than 4,300 million euros transacted, it attracted 31% of total investment in our country. 2024 was marked by the closing of large-volume transactions (>100 million euros), which came to represent nearly 50% of the total and among which the BTR, Flex Living and student residence products were represented.
The Multifamily segment attracted 41% of total investment in Living (€1,765 million), although down 11% compared to the 2020-2023 average due to low activity in the first half. Investment in Flex Living tripled year-on-year, exceeding €1,411 million thanks to major tertiary land acquisitions in suburban areas and office conversions in the city centre. Student residences reached €985 million, with a major impact from Azora's purchase of EQT's 12 residences, the largest deal of the year in the sector. Finally, Senior Living accumulated nearly €170 million, which will add more than 750 new places in Malaga, Alicante and Madrid.
Residential prime yields remained stable in Q4, standing at 3.8% in Madrid and 4.0% in Barcelona. The Flex Living followed the same trend despite the absence of stabilised asset transactions yet, with a difference of 50 bps compared to the Multifamily for coliving assets (residential land) and 100-125 bps for those on tertiary land. For their part, student residences are positioned as the type of asset that has most reduced prime yields during 2024 in Spain (-35 bps).