• CG Capital Europe: Spanish Living Sector in 2022

    April, 2023

FY22 was an excellent year for the living sector in terms of investment. Of the total amount invested in the Spanish real estate sector, 19% was allocated to living (c.€3.1 billion, excluding student housing). Moreover, it represents a growth of c.3% compared to FY21 (c.€2.9 billion).

Prime yields experienced several upward adjustments over the year given current situation, in fact, during Q4 22 yields increased 25 bps, reaching 3.75% and 4.25% in Madrid and Barcelona, respectively.

Total housing purchase and sale transactions added up to 542,000 during the first three quarters of 2022, mainly driven by foreign buyers. In addition, housing prices-maintained record increase rates (7.6% as of Q3 22).

BTR segment also observed interesting strong fundamentals: Investment volume reached c.€1.8 billion, becoming one of preferred asset classes, as it is considered a safe investment.

The construction of new product and the increasing effort needed by Spanish households to acquire a home has caused the rental tenure regime to stand at 24.2%, and is expected to reach c.30% in 2026-2027.

Regarding BTR prime yields, despite the upward adjustments in H2 2022, these have remained as one of the most compressed yields (3.75%).