Overview of the Spanish Residential Market 2020
The Spanish Residential sector has performed extremely well in 2020, with total investments amounting to c.€2.6 billion (+30% vs. 2019), one-third of Spanish RE investments lead by the BTR (Build to Rent) and PRS (Private Rented Sector) sectors.
BTR which exhibited a positive tendency in recent years, has definitively consolidated in 2020, concentrating c.54% of investments (€1.4 billion) and doubling last year figures (€675 million). BTR investments have been boosted by current employment precariousness, new employment trends (demanding greater mobility), trend’s switch from buying to renting and the still notorious effects of the 2008 economic crisis. As a result, rental regime penetration has steadily increased to 24% in 2019 (vs. 20% in 2005).
2020 has experienced a decrease in the number of residential units sold. (-c.20% vs. 2019), with 425,000 to 450,000 residential dwellings transacted. Free housing prices (€/sq.m.) have decreased between 2% and 3% vs. 2019. On the other hand, the average rent increased to €10.2/sq.m./month (+3% vs. previous year).