Known in the real estate world as “Build to rent”, this trend of offering brand new apartments for rent is consolidating and there are already more than 30 active promotions.98
In the last two years, investments aimed at building to rent have stood out in Spain. More and more developers and investors are betting on this trend, which last year reached 2,100 million euros, according to Activum Real Estate Consulting. Idealista, the real estate marketplace in southern Europe, has already announced 30 promotions, most of them in Barcelona (15) or Madrid (7).
The price of these rentals does not vary much from a traditional one, and, in addition, they offer better qualities and services in the building than a second-hand home. They have parking spaces, children’s area, green areas and swimming pool, or security, concierge and gym. These services influence the price, and also its comparison with second-hand apartments in the same location. But the supply of these homes is still not very high.
This formula for renting is beginning to be known in Spain now, but it is well established in other countries such as the US, Great Britain or Germany. In the German country, the companies Vonovia and Deutsche Wohnen, now together, add around 500,000 rental homes.
In our country, public housing barely represents 2% of the total real estate market. An insufficient figure considering
account the need for social and affordable rent. The administrations have recognized that it is necessary to expand the stock of this type of housing.
Meanwhile, flats owned by banks and institutions are being encouraged to be used more for rent than for sale, as is empty housing that comes onto the market or, as we say, “build to rent” construction (BTR ), with public-private collaboration.
The province where the BTR is promoted the most is in Barcelona, with 50% of all promotions advertised in Idealista. They are distributed in cities such as Barcelona capital, Badalona or Sant Cugat del Vallés. In Madrid, these constructions are directly related to the construction of officially protected housing for rent, that is, the requirements stipulated by the Community of Madrid must be met. There are 3 active promotions in the capital and 2 in Valdemoro, among others. There is also an offer of new housing for rent in Valencia, Seville or Valladolid, among other cities.
The average size of these apartments is 84m2, with one or two rooms normally. Prices vary depending on the municipality, with Barcelona being the most expensive (22.4 euros/m2/month). In Madrid, the unit price is 12.1 euros/m2/month. The most affordable “build to rent” homes are in Granada (7.9 euros/m2/month) and Ferrol (8.1 euros/m2/month).
The promoters that lead the BTR market in Spain are BeCorp, AQ Acentor, Locare Real Estate or Returnoga, with more than 45% of the total active promotions in idealista.
More information at idealista/news.
