The real estate market is one of the main driving forces of Spain's economic recovery. In particular, it is predicted that 2022 will be an excellent year in terms of sales and investment inflows.
However, there are a number of problems that have affected and continue to affect the sector, such as, for example, the problem of access to housing among young people.
The employment situation and current real estate sales prices are the main reasons preventing young people from accessing housing. In this regard, large investors and construction companies were able to take advantage of the current situation and actively develop construction according to build-to-rent (BTR).
Anna Puigdevall, Treasurer of FIABCI Spain and CEO of the National Association of Real Estate Agents (ANAI), explains: «The BTR (Build-to-rent) model is one of the most common trends in Spain at the moment. It allows investors to get a fixed profit thanks to the rent. This model has been strengthened, in particular, thanks to the young population, who find it very difficult to get access to buying real estate».
Puigdevall points out: «Although historically Spain is a country of buyers, however, in recent years the rental market has gained a lot of weight. The BTR model appeared in Spain relatively recently, however, it is a successful formula that has proven itself in markets such as the United States and the United Kingdom».
However, there is a new factor that is expected to have a serious impact on this real estate sector — the introduction of rent rate regulation according to the new « Law of the House».
The FIABCI council warns: «It is likely that the fact of rent regulation in areas with an unfavorable economic situation will slow down BTR projects there, since there is some uncertainty about how this will affect the profitability that investors expect to receive».