Investment in residential rental properties in Spain has reached a historic annual record.

According to consulting company Savills, since the beginning of 2026 it has exceeded 3.8 billion euros in the multifamily and flex living segments, which is 36% more than last year’s total and 30% more than the average for the last five years.

The rise in interest in rental housing reflects broader market dynamics, with investors increasingly looking real estate in Spain not only as an object of purchase, but also as a tool for generating regular income.

Three large transactions generated more than 2 billion euros

The overall investment volume was driven by three major transactions related to the rental portfolios of Fidere, Patrizia and Ares, which together amounted to just over €2 billion.

The most notable deal was the sale by Fidere of 5,000 rental apartments located in 47 buildings to Brookfield for €1.05 billion.

Multifamily is growing, but flex living is losing momentum

Savills data shows a significant increase in investment in the multifamily segment, that is, multi-apartment residential buildings, while the flex living segment is losing momentum compared to previous years, and the share of the coliving segment this year was purely symbolic.

For private owners and investors who plan to use housing as a rental asset, the issues of managing the property, finding tenants and drawing up contracts are especially important. You can find out more about this in the section about renting out real estate in Spain.

Institutional investors occupy 85% of the market

In terms of investor types, institutional investors account for approximately 85% of the total investment in these segments, while developers account for about 10% and government agencies account for about 4%.

In addition, Savills noted the emergence of new major investors in the Spanish rental market, such as pension funds and entities associated with foreign insurance companies.

Spain lags behind Europe in share of professional rental housing

According to the consultancy, core capital dominates the residential sector across Europe.

In countries such as France, Germany, Ireland, the Netherlands and the UK, professionally managed rental housing accounts for on average around 20% of the housing stock, compared to less than 8% in Spain.

At the same time, this profile is focused on stability rather than high profitability, and it should be noted that there is an increase in the activity of value add funds, specializing in the active management of privatization processes.

The volume of such processes, consisting of the transition of housing from the rental market to the single sale market, has already amounted to 1.6 billion euros over the past year and since the beginning of this year, which is 27% of the volume of transactions over the past 18 months.

Madrid concentrates two thirds of investments

By geographical region, total investment since the beginning of the year is mainly concentrated in Madrid – 66%.

Next comes Barcelona with 13%, and the remaining 20% is distributed between other cities, primarily Malaga and Valencia.

Before purchasing a property for subsequent rental, it is important for an investor to evaluate not only the location and profitability, but also legal, tax and operational aspects. This can help consultation with a specialist on purchasing real estate in Spain.

Investments could reach 4 billion euros

As for the coming months, the consulting company predicts that investment in residential properties will reach 4 billion euros.

Of these, 35% have potential for privatization, but can also be purchased for rental by investors with a basic profile.

Demand for living formats continues to grow

Interest in the living segment is growing not only among investors, but also at the level of demand.

There are waiting lists for rooms without a kitchen; this applies to coliving, flex living, senior living or new student residence concepts.

These housing models did not exist 10 years ago, and they typically have in common that private areas are small in size, while common areas are spacious and include a variety of amenities.

In addition to the gym, laundry or work areas, kitchens are also often found in common areas.

New formats respond to social and demographic changes

These living patterns are emerging in response to new social needs and demographic trends, as well as the growing demand for temporary rentals for work reasons and the ongoing difficulties in both owning and renting housing.

All these factors explain why they are becoming increasingly important in the market and the pace of their development exceeds expectations.

At the same time, it is important for owners working with short-term, seasonal or tourist rentals to take into account the new requirements for registering properties. Read more about this in the article about NRA in Spain and rules for accounting for rental housing.

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