• Spanish Living Market Q3 2023

    November, 2023

As of Q3 2023 YTD investment volume in the Spanish Living sector stood at €1.9 billion, -57% compared to the same period in 2022. Only in Q3, the investment volume stood at €495 million (-37% vs. 2022).

This reduction, influenced by the economic uncertainty, the rising in interest rates, and the shortage of investment opportunities, do not prevent the Living sector to consolidate its position as one of the main investment destinations in Spain and worldwide. Since 2018, its share in the real estate investment market in Spain has tripled, and it is expected to surpass 30% of total investment by the end of 2023. This growth is primarily attributed to investments in the Built to Rent (BTR) and Private Rented Sector (PRS).

In Spain, investment in BTR and PRS stood at €1.6 billion as of Q3 2023 YTD (c. 84% of the total invested in the sector), representing a 35% decrease compared to the same period in 2022. Nevertheless, it should be noted that investment in 2022 was boosted by large transactions, such as the acquisition by Patrizia of 10 built-to-rent assets for €600 million or the sale of 740 units by Blackstone to Axa for approximately €285 million.

Investment in Healthcare and Senior Living was c. €160 million in the first nine months of 2023, c. 55% lower than the total transacted at that moment in 2022.  Investors remain focused on existing assets, influenced by the economic situation and the low supply of assets. Investment in this asset class is expected to increase given the aging population and the need for supply of nursing home beds.