Living has established itself as the main driver of real estate investment in Spain during the first half of 2025. The volume transacted exceeded 1,720 million euros, representing a year-on-year growth of 14% and 23% of the total invested in the real estate sector, according to CBRE data. This is the second best six-month record since data has been available, behind only the first half of 2022, when €2.43 billion was transacted.
Madrid accounted for 40% of the capital allocated to the sector, followed by Barcelona and Valencia, with 9% each. CBRE links this evolution to factors such as the favourable macroeconomic context, the improvement in financing conditions and the persistent structural imbalance between housing supply and demand. In addition, the results of its European Investor Intentions Survey suggest that living will maintain its position as the main asset class for the remainder of the year.
The report "CBRE Trends in Living" highlights the high interest of both banks and alternative financiers in this segment. The analysis points out that the sector is evolving towards a more diversified offer, with housing solutions adapted to different stages of the life cycle, while incorporating tools such as industrialised construction, ESG criteria and digitalisation to improve operational efficiency.
"The dynamism of the Living sector as the main driver of real estate investment continues to be supported by solid market fundamentals, which translates into high investor and financier appetite," explains Patricia García de Ponga, Executive Corporate Director and Head of Living at CBRE. "The segmentation of the sector offers attractive opportunities for different types of capital and products. There is still a real need for affordable housing and more flexible housing solutions that respond to different demand profiles," she adds.
Investment by segment: Multifamily accounts for almost half of the total
Multifamily was the main focus of investment within the Living sector, with EUR 831 million transacted, of which EUR 697 million corresponded to Build to Rent (BTR) developments and EUR 134 million to the Private Rented Sector (PRS). This segment accounted for 48% of the total volume invested in Living. Within this segment, affordable product accounted for 72% of investment and 35% of the sector's total. According to CBRE, institutional investors continue to invest in this type of assets due to their income stability, high occupancy rates and competitive returns.
Student housing registered 560 million in transactions between January and June, 32% of the total investment in Living. The bed supply rate in Spain stands at 7%, well below the European average of 18%, with an estimated unmet demand of around 460,000 students. The report notes that the sector is moving towards a phase of maturity, with a growing interest in medium-sized cities as new poles of development.
Flex Living reached €330 million in investment, channelled through twelve deals, mostly in Madrid. CBRE identifies two parallel trends: the development of new projects on tertiary land in peripheral areas, where availability and costs are more favourable; and the acquisition of operational and stabilised assets, indicating an evolution towards a more mature market.
As for Senior Living, no transactions were recorded during the first half of the year, although demographic projections point to a progressive dynamisation of the segment. The group of independent over-65s - without the need for intensive medical care - continues to lack a specific residential offer in Spain, despite being one of the fastest growing segments within the population pyramid. According to the report, the lack of specialised operators has limited its development, although the first movements are beginning to be detected on the part of players interested in positioning themselves in this market.
