The residential sector leads Spanish real estate market with investments of EUR 2,800,000

The residential sector leads Spanish real estate market with investments of EUR 2,800,000

The residential sector is leading the real estate market in 2021 with investments of EUR 2,800,000 over the past 12 months. It is followed by the industry and logistics sector with EUR 2,453,000.

As for the type of housing experiencing the greatest investment boom, the sector of apartment buildings (built for rental, private rental and student dormitories) in Spain is the most dynamic this year, accounting for 24% of the total investment in the country. This is stated in a new report by the real estate consulting company CBRE.

Real estate for rent

The construction sector for rental is leading. In 2020, 4.7 million rental units were registered in Spain, which is 51% more than in 2005. During 2021, transactions in this sector amounted to EUR 1,012,000, which is 28% more than in the first 9 months of 2020. An increase of 12% is expected by 2025.

Investments in Build to Rent buildings are mainly supported by institutional markets (50% of the total volume is accounted for by real estate funds), which allocate the entire building for rental real estate, giving priority to common premises and offering additional services. By the third quarter of 2021, 5,200 units were produced for rent, which is EUR 1,012,000.

New buildings

New buildings are the preferred choice for buyers and the demand exceeds supply (especially in the areas of Madrid and Barcelona), and many buyers prefer the conversion of used real estate. In the first half of 2021, 319,000 transactions were concluded, which is 64% more than in the same period of 2019. However, only 33,000 were new buildings (10% of the total), and 286,000 were used.

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