Spain’s real estate market is transforming, driven by the rapid growth of the "living" sector – a trend that includes models such as build-to-rent (BTR), flex living, coliving and senior living. According to a recent report by Tecnitasa, investment in this segment has reached record levels. By the third quarter of 2024, capital totalled €2.5 billion, accounting for 31% of the country’s total real estate investment – an increase of 1.5% compared to the same period in 2023.
This growth reflects shifting housing preferences in Spain, influenced by demographic, economic and social factors. The rise in single-person households – now representing over 25%, according to the Spanish Statistics Institute (INE) – alongside greater labour mobility among young professionals and increasing demand for flexibility, is reshaping tenants' priorities. The living sector is emerging as a tailored solution to these evolving needs, offering flexible homes with integrated services, designed for dynamic and modern lifestyles.
Build-to-rent and flex living are the market leaders
The build-to-rent (BTR) model, which focuses on buildings designed exclusively for rental and managed by a single operator, has seen remarkable growth. BTR developments stand out for integrating services such as security, maintenance, coworking spaces, gyms and green areas. Their success lies in the ability to combine affordability, convenience and flexible contracts – appealing to a generation that values access over ownership.
Among the most prominent projects are Skyline in Madrid, developed by Stoneweg and M&G Real Estate and BeCorp in Sant Just Desvern, Barcelona. Both offer hundreds of high-quality, fully serviced rental homes. Sustainability is also playing an increasingly important role in these developments, with certifications such as BREEAM and LEED gaining traction.
Flex living, meanwhile, caters to the needs of mobile professionals, expats and digital nomads, providing homes suited to stays ranging from a few months to several years. Modular construction and adaptable design enhance the user experience while helping developers reduce operational costs.
Sustainability and technological innovation: the new foundations of the sector
Sustainability has become a key priority in the living sector. Industrialised construction techniques minimise waste and accelerate project completion, while energy-efficient solutions – such as solar panels and rainwater harvesting – cater to the growing demand from environmentally conscious consumers.
Meanwhile, technological integration is transforming both property management and the tenant experience. From smart home systems that control lighting and temperature to digital platforms that streamline contract management, service bookings and maintenance requests, digitalisation is enhancing operational efficiency and improving tenant convenience.
Senior living and office conversion: long-term solutions
The ageing population is driving the growth of the senior living model, which combines independent living with integrated services for those over 65. Cities such as Málaga, Valencia and Alicante are emerging as key investment hubs, thanks to their favourable climate and high quality of life. These developments offer adapted housing, well-being services and programmes designed to promote active ageing.
Another major area of expansion is the conversion of office spaces into residential properties. The decline in demand for physical office space – accelerated by the rise of remote working – has created new opportunities to repurpose buildings in urban areas. This not only enhances housing availability but also contributes to the sustainable regeneration of neighbourhoods.
Growth prospects and geographic expansion
The living sector is set to continue its expansion in 2025, with a growing focus on medium-sized cities such as Zaragoza, Seville and Alicante. These locations offer a compelling mix of affordability and quality of life, attracting both developers and tenants. Meanwhile, models such as micro-living and cohousing – designed for compact and community-oriented living – are expected to gain ground as a response to the shortage of affordable housing in urban areas.
The living sector is not only reshaping how people live but also how they invest in housing. With a flexible, sustainable and technology-driven approach, it has firmly established itself as one of the most dynamic and promising segments of Spain’s real estate market.
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