The data show that the needs of Spanish market are numerous, but most of all it lacks housing for the rental market. An acute disadvantage. By 2030, the country needs to create 1.2 million new residential properties to close the supply deficit.
The consulting agency Savills points out that in most cases the housing offered for rent is old housing, an outdated product that does not adapt to current demand. On average, properties in this market reach the age of 20 years.
In addition, the market is experiencing an active increase in rental rates for residential real estate. So, only in February last year, the growth was 0.40%, and in annual terms, rates increased by 4.56%. These figures are presented in the report of the real estate portal Pisos.com.
Following the calculations of Savills, the past year closed on 2.3 billion euros of investment in apartment buildings, which is 21% of the total investment in the sector.
These indicators are combined with demographic and socio-economic factors, an imbalance between supply and demand in the rental markets in the regions and a large amount of liquidity in private hands.
In the sum of 2.3 billion euros, Madrid accounted for 52%, 13% went to Barcelona. It is worth noting that the rental yield is very high: 3% in large cities and up to 5% of the rest.
Meanwhile, the financing of new projects is in the range of 50-60%. As for rents, they increased by 14% in popular areas and by 35% in others.
According to Atlas Real Estate Analytics published by EjePrime, the portfolio of residential real estate projects intended for rent has increased from 90,080 to 102,560 units.
Atlas calculations relate to the objects that will be commissioned this year and in the period up to 2026, while the growth in the number of projects over the past year amounted to 13.7%.
Among the given number of 102,560 residential properties, 51.7% will be created on the basis of financing from private investors. The remaining 48.3% will receive some share of government funding. These estimates are far from those made by Savills.