What is driving investment in the Living sector in Spain in 2025?

Investment in Living in Spain reached €1.416 billion during the first half of the year, accounting for 17% of total real estate investment.

How is the residential market evolving in Spain?

The residential market in Spain is showing steady recovery in 2025, with a 13.2% increase in building permits and a 17.2% rise in housing starts compared to the 2024 average. Total transactions have reached 184,087 units, with an average ticket of €288,114 for new builds and €204,266 for second-hand properties. However, housing affordability remains a concern, as purchase and rental effort rates exceed 40% in cities such as Madrid, Barcelona and Palma, reflecting growing pressure on access to housing.

Where are the housing investment opportunities?

Investment opportunities are concentrated in Madrid, Barcelona, Málaga, and Valencia, where high demand, dynamic pricing, and transaction volume converge. The Flex Living segment stands out due to its profitability and lower land costs, attracting capital towards more agile and adaptable residential models. In addition, the purpose-built student accommodation (PBSA) market is consolidating as one of the most strategic asset classes, particularly in university cities and areas with limited affordable housing supply.

Which residential formats are attracting institutional capital?

Institutional capital is shifting its focus to formats such as Flex Living, PBSA, and BTR (Build to Rent), which offer greater stability and returns in uncertain environments. In the first half of 2025, 43% of Living investment went to PBSA, followed by Flex Living (25%) and BTR (16%). Funds, SOCIMIs (REITs), and investment vehicles accounted for more than 70% of buyers, confirming the structural interest of professional capital in these formats.

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Download the Snapshot Living in Spain Q2 2025at this link