Riding the wave of BTR in Spain
Build-to-Rent segment (BTR) it’s booming in 2021, not only in Spain but across Europe, absorbing over 30% of the total Real Estate Investment volume during this last year. Only in Spain, the YTD direct investment reached over €1,350 million, which implies an increase of 33% compared to the same period in 2020. Along the last quarter, we have witnessed an impressive transactional volume, reaching over €460 million.
Both European, private and institutional investors, are showing huge interest in this asset typology and the rental business model. The strategy for many of the key players developing residential assets has switched from sale (BTS) to rent (BTR), restructuring their organisations and resources to take advantage of the demand for this product.
At CG Capital Europe, we are currently involved in several BTR Transactions and, from first hand, we expect BTR to be one of the undisputed protagonists of the sector in the upcoming years, with figures c.8,500 homes built for rent per year.
In spite of the recent growth in the rental market, Spain is still way below the main European markets, 24% share (c.27.5% by 2024) versus other comparable countries such as the United Kingdom, where rented housing represents 35% of the total, or Germany, with 56%.