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Insights

Marketbeat Spain Living

Living Marketbeat is a summary of the Spain nursering property sector providing comment on recent trends as well as market data and analysis.

Download Q2 2025 report

MARKET CONTEXT

  • The Spanish residential market shows solid recovery in 2025, with controlled inflation (2.2%) and a growing population (49.15M).
  • The decline in Euribor has boosted transactions, which rose 20% year-on-year through May.
  • Institutional investment remains prominent, particularly in BTR and Flex Living.
  • Rental regulation is increasing, with stressed zones and the introduction of the IRAV index for rent updates.
  • Rental demand continues to exceed supply, reinforcing upward pressure on rents.

OCCUPIERS AND OPERATOR TRENDS

  • PRS / BTR / Flex Living:

    • Strong rental demand due to limited access to homeownership.
    • Flex Living leads growth (+200% in deliveries in 2024).
    • BTR maintains a steady pace with 8,000 units delivered.
    • PRS remains stable with a stock of ~20,000 units.
    • High institutional activity, especially in BTR and Flex Living.
  • PBSA:

    • 7% provision rate of beds in relation to total student population in Spain.
    • Increase in international students due to educational quality and lifestyle.
    • Fragmented market; top operators represent <45% of total.
    • New developments led by institutional capital in key and secondary cities.
  • Nursing Homes:

    • Aging population and high life expectancy drive demand.
    • Deficit of ~100,000 beds compared to recommended standards.
    • Fragmented market; top 10 operators control only 25%.
    • Focus on sustainable developments in new locations.
    • Operational costs, especially wages, placing pressure operators.

TRANSACTIONS AND YIELDS

  • PRS / BTR / Flex Living:

    • Moderate but stable transactional activity in H1 2025, with €617M invested (+52% YoY).
    • Notable deals: GMP acquires Bext Space (285 units, Madrid); two BTR sales by Neinor Homes to Round Hill (123 units, €25M) and to 1810 Capital Investments (128 units, €25M) across various Spanish locations.
    • Prime yields: 3.75% in central Madrid and 3.95% in Barcelona; decentralized areas range between 4.15% and 4.25%.
  • PBSA:

    • Strong market reactivation with large-scale transactions.
    • Highlight: CPPIB acquires Livensa Living portfolio (9,000 beds) from Brookfield for €1.2B.
    • Prime yield compressed to 4.40% in Q2 2025.
  • NH (Residencias de Tercera Edad):

    • 2025 began with limited investment activity, including one portfolio transaction and three individual deals, two of which involved Sanitas as the operator.
    • The continued expansion of operators such as Sanitas in key Madrid locations could generate new opportunities for both private and institutional investment.
    • Theoretical prime yield stands at approximately 5.5%, although transactions are being closed above 6%.

 

Q2 Spain Living Marketbeat

Access Q2 2025 commercial real estate results for the Living sector.

Download report

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