These are the main conclusions extracted from the new edition of the Zoom In an analysis from international consultant Savills Aguirre Newman, where the company’s experts explain the current market sentiment and the future prospects for the alternative and housing segments in the short, mid and long-term.
Demand for this type of assets which includes student and senior residences, co-living units and dwellings destined to the rental market, should assert itself in the short-term, as soon as the necessary sanitary safety conditions are assured.
Student residences should continue to grow in Spain – either by building new ones from scratch or by refurbishing existing assets, a trend which is visible across the country, despite being considered temporary –, since besides being considered anti-cyclic products, these assets also offer yields above 5%, higher than retail and offices, for example. In 2020 alone, it is expected that the offer for this segment will increase in 100.000 beds for around 400.000 students.
In terms of housing rental, which includes build-to-rent projects and new developments destined for rental, growing due to the imbalance between offer and demand within the market, experts point out that it will be necessary to advance with public-private cooperation in order to level the situation and create an affordable housing stock. In terms of new construction for purchase and investment, it is expected that dwellings with terraces, gardens and wider divisions will be the most appreciated by buyers in the short and mid-term.
The refurbishments needed for the senior residences to remain operating in security point out to bigger cooperation with the public administration. With the focus on the mid and the long-term, investors and operators predict there is much to improve as there will be a high demand for quality housing solutions for the population over 65, which in Spain represents 19% of the population, with an expected increase to 24% by 2030.