Living, market data - Figures fourth quarter 2025 Spain

The Living market closed 2025 as one of the most dynamic and strategic segments of Spanish real estate, driven by a combination of structural and short-term factors that continue to strengthen its attractiveness. Residential demand continued to grow in an environment of clearly insufficient supply, while investment registered a new all-time high, consolidating Living as the first asset class by volume of capital.

 

Scarce supply and sustained growth in demand

 

Housing development remains well below current needs, prolonging a structural deficit that raises prices and deteriorates accessibility, especially in large cities.

The buying and selling market maintained a positive dynamic, although with some moderation in the third quarter. Up to September, 551,000 homes were transacted, 7% more than in the same period last year, with a notable 14% of foreign buyers. House prices experienced a strong increase of 12.8% year-on-year, the largest increase since 2007, with greater acceleration in the second-hand market (13.4%) compared to new construction (9.7%).

 

Growing demand, limited supply and tighter financial conditions continue to shift a significant portion of households into the rental market.

 

Living investment: all-time high and absolute leadership

 

The Living sector led real estate investment in Spain in 2025, with a record volume of 5.4 billion euros, which represented 29% of the total and a growth of 23% compared to the previous year. Madrid accounted for 40% of the capital invested, followed by Barcelona (15%) and Valencia (8%).

 

The Multifamily segment acted as one of the major drivers of the sector, with 2.2 billion euros invested – of which 1.7 billion euros corresponded to BTR and 516 million euros to PRS – representing 41% of the total. The "affordable" product concentrated 55% of the capital allocated to Multifamily, reflecting a clear institutional appetite, while the public sector played a prominent role as a seller, generating about 40% of the volume through tenders and tenders.

 

Student housing closed a record year, with more than 2.3 billion euros transacted and a weight of 43% of the total of the Living. The dynamism of the segment was supported by large-scale operations and the strong appetite for consolidated platforms.

 

Flex Living made significant progress and reached 790 million euros in 2025, marking a new milestone with asset operations already operational. In contrast, the Senior Living segment recorded less than €100 million, focused on two land acquisitions for new developments on the Mediterranean coast.

 

2026 Outlook: Living remains a key sector with a long way to go

 

Forecasts suggest that Living will continue to be one of the strategic sectors of the Spanish real estate market. The structural shortage of supply, the growth of rents, the interest of institutional investors and the dynamism of segments such as student residences and Flex Living make up a favorable outlook for 2026, with selective opportunities in affordable products, turnkey projects and repositioning.