Although many groups of the population, mainly young people, cannot afford to buy a home, in recent years, there has been increased activity in the rental market. This trend has encouraged most companies to open divisions engaged in the construction of new buildings to meet their needs. The build to rent strategy, that is, the construction of residential real estate for rent, is becoming more and more relevant in many cities of Spain. And Valencia is no exception: over 1,500 units will be built here by 2025.
This phenomenon has aroused great interest among investors. There are many funds and institutional investors who have seen great potential in the Spanish real estate market. "The build to rent strategy has strengthened and will continue to grow actively. Its development is relevant for a country like Spain, because we need a strong rental market to meet the demand of the population," explain representatives of Aedas Homes, one of the largest national developers.
The same trend has been strengthening for many years in the USA and other European countries, but in recent years, it has been becoming more and more popular in Spain. "There is nothing new in renting housing, because this practice has always existed between individuals. What is new is that companies are constructing entire buildings for tenants. The need for rent is growing along with the needs of the population who are unable to buy real estate," explained Miguel Angel Gonzalez, General Director of Business at Vía Célere.
Although in recent years, there has been an increase in rents, which, according to Aedas Homes, has grown by 45%, its level is still far from the European average (24% vs. 31%). In addition, about 97% of the offers on the rental real estate market are still in the hands of private individuals.