Living, market data - Figures third quarter 2024 Spain

Despite an improvement in the effort rate compared to a year ago (-1.8 p.p.), the difficult access to housing is causing a shift in demand from sales to renting. Against this backdrop, the percentage of households renting in Spain will rise from 25% of all households today to over 26% in 2028.

The residential market for sale and purchase is solid thanks to the rapid decline in interest rates, the good pulse of the labor market and higher-than-expected population growth. Demand grew by 6.5% year-on-year, with 350,000 homes sold in the first quarter, helped in part by the impact of foreign sales. Housing prices continued to boom, with an increase of 7.8% year-on-year, with the new construction segment posting the highest annual rate since 2007 (11.2%).

In terms of investment, the Living sector maintains its position as the first asset class in Spain, capturing 31% of total investment with 2.5 billion euros transacted up to the third quarter. This figure represents an increase of 1.5% compared to the same period in 2023. The investment momentum was marked by eight large transactions (≤70 million euros) that brought together almost half of the total volume and among which BTR, Flex Living and student housing products are represented.

The residential investment segment (BTR/PRS) starred in several transactions of significant volume in the third quarter to reach €1,051 million. Flex Living continued its growth, exceeding EUR 974 million through September, representing 39% of the total in Living. Investment in student housing reached €415 million, below the average activity of previous years, although at similar levels to 2023.