Flex living emerges strongly in Spain
Times change, and with it, our way of living. In the digital age and in a world where flexibility is key, the real estate market in Spain and the rest of the world is reinventing itself with new formulas and trends such as flex living.
Flexible accommodations are redefining the concept of housing in Spain. As in other European countries, this new rental modality is emerging strongly, especially in large cities where housing demand is high and supply is scarce and/or unaffordable. It offers services, comfort, and community to tenants without long-term commitments. For many, it is an evolution of co-living but more focused on young professionals and digital nomads looking for temporary stays.
France is the market with the largest number of operational Flex Living units in Europe, and Spain is the fastest-growing country. According to data from the report “The Flex Living Market in Spain” prepared by the international real estate consultancy JLL, the sector in our country has experienced notable growth in recent years. Since 2019, it has accumulated more than 560 million in investment, of which 140 million were transacted in 2023. According to data provided by JLL, there are currently more than 21,000 beds in the portfolio. The future also points to growth. According to the consultancy’s forecasts, Spain will be the third European country with the most flex living places in 2026, only surpassed by France and the United Kingdom.
As Manuel Pardo, Director of Living at JLL Spain, states, “In Spain, we face a shortage of beds both for rent and sale. The flex living concept emerges as a solution to alleviate the existing imbalance between supply and demand, especially in areas where price pressure is greater. And unlike other asset classes, Spain leads the production of Flex units.”
Madrid concentrates most of the supply
Flex living has a stronger presence in major capitals. Madrid accumulates most of the current supply with more than 6,000 beds in stock and about 16,000 in project. Most of it is located around the M-30 and is more focused on short stays. However, there are also future projects that will be located on the outskirts of the capital, within the new neighborhoods.
Barcelona has 2,200 places, and in the coming years, 2,600 new beds are expected to be added. Another urban center with a significant offer is Valencia, which has 1,100 places in stock and more than 880 new beds planned.
Guipúzcoa, with 646 existing places and 693 planned; Málaga with 451 already developed and 636 in process; and Vizcaya with 176 beds in flex assets and 730 in forecast, are other Spanish cities attracting this new modality.
Main operators
Stoneshield Capital has led one of the recent investments in flex living in Madrid, where it will build 3,500 flexible residence places in Valdebebas, which will mean an investment of 500 million euros. Greystar, Bain Capital, or Kora Living are other operators developing assets throughout the peninsula and will operate around 1,700 beds in the next three years, according to JLL. For its part, Smart Rental Group operates for third parties and has almost 1,500 beds in different modalities. Other notable companies in this sector are Flipco, Livensa Studios, Cotown, or the joint venture between Dazia and Aermont. Also, traditional players and developers like Aedas and Culmia, and more recently Vía Ágora, are already planning their entry into this market.
Spain will double its offer by 2027
Furthermore, according to Atlas RE forecasts, between the assets already operational and those announced for development, 26,776 units are expected to be active in 302 buildings by 2027. This means that Spain will double its medium-stay rental offer in the coming years.
Attractive to investors
The take-off of the flex living sector is again a very attractive segment for investors, who have opted to diversify their portfolio in recent years by incorporating flex living assets into their portfolios. JLL highlights that many operations are structured through direct promotion or joint venture formation. Urbanitae has also joined the flex living trend with the recent launch of the Oceánika project in Torremolinos (Málaga). The operation consisted of acquiring an old hotel with 180 rooms to convert it into a flex living and a medium-sized shopping center for its subsequent sale to an institutional investor.