MARKET CONTEXT
- Residential transactions totalled 286,000 up to May 2026, representing a 3.51% year-on-year decline, impacted by rising house prices and tighter financing conditions.
- The institutional residential market is undergoing a new cycle, characterised by the entry of long-term Core capital and the gradual exit of early-stage developers.
- The supply of rental housing remains insufficient to meet growing demand, continuing to put upward pressure on rental levels.
- The designation of stressed housing areas and the implementation of the IRAV index continue to shape the strategies of residential owners and operators.
- Public-private partnerships continue to emerge as one of the main mechanisms for increasing the supply of affordable housing.
OCCUPIERS AND OPERATOR TRENDS
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PRS / BTR / Flex Living:
- Structural rental demand continues to increase due to the growing barriers to home ownership.
- Total stock has reached approximately 32,100 BTR units and 21,400 Flex Living units.
- Demand for short-term leases and flexible residential models continues to grow, particularly in major cities.
- There is a growing trend towards the privatisation of BTR/PRS assets through the individual sale of units to maximise returns.
- Flex Living remains one of the fastest-growing segments within the Living sector.
PBSA (Purpose-Built Student Accommodation):
- Spain's student accommodation provision rate stands at 6.7%, remaining below that of other European markets.
- The country continues to be one of the leading international destinations for students.
- Operators have a pipeline of approximately 21,000 beds, highlighting the sector's strong growth potential.
- Notable transactions in 2026 include Nuveen's acquisition of the Bravo Portfolio Spain (€330 million) and Greystar's acquisition of the Straco portfolio (€120 million).
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Nursing Homes:
- Population ageing and one of the highest life expectancies in Europe continue to drive demand.
- Spain faces an estimated shortfall of approximately 100,000 beds to meet recommended capacity levels.
- Supply remains highly fragmented, with the ten largest operators accounting for only 25% of total stock.
- Investor interest remains focused on next-generation developments that are more efficient, sustainable and better adapted to evolving care requirements.
TRANSACTIONS AND YIELDS
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PRS / BTR / Flex Living:
- Investment activity reached record levels during the first half of 2026, with €2.934 billion transacted.
- Key transactions included:
- Brookfield acquired the Fidere portfolio (5,300 units) for €1.05 billion.
- HOOPP acquired 2,000 homes from Avalon for €600 million.
- Azora acquired a Patrizia BTR portfolio in Catalonia for €350 million.
- Prime yields remained stable:
- Madrid CBD: 3.85%
- Barcelona CBD: 4.10%
- Madrid Decentralised: 4.15%
- Barcelona Decentralised: 4.40%
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PBSA (Purpose-Built Student Accommodation):
- The market continues to attract strong investor demand for stabilised assets and large-scale platforms.
- Prime yields remain stable at around 4.40%.
- Investment volume has exceeded €540 million year-to-date in 2026.
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Nursing Homes:
- Transaction activity has shown a gradual recovery throughout 2026, with institutional investors playing an increasingly prominent role.
- Further market consolidation through corporate transactions and M&A activity is expected during the second half of the year.
- Prime yields currently stand between 5.40% and 5.50% for best-in-class assets.
