Flaternity: coliving solutions for students and young professionals
Flaternity offers coliving solutions by adapting large and outdated properties to create functional and high-quality spaces. The company, led by Colombian entrepreneurs Esteban Molina and Daniel Bayona, was founded to address the growing demand for temporary housing among Erasmus students and young professionals. In this interview, Daniel Bayona, Chief Strategy Officer (CSO) of Flaternity, shares insights on the solutions they offer to tenants and property owners, their expansion plans in new cities like Madrid, Málaga, and Granada, and the impact of seasonal rental regulations. He also discusses how Flaternity aims to further consolidate its presence in the real estate market in 2025.
After arriving in Barcelona as a student, you decided to found Flaternity with Esteban Molina. What led you to take that step?
Esteban Molina, CEO and co-founder of Flaternity, arrived in Barcelona in 2014 to study finance, while I came in 2015 to pursue my MBA. At that time, we experienced firsthand the difficulties both students and short-term residents faced when trying to find a room or an apartment.
The barriers to entry were quite high: real estate agencies required extensive documentation, and many students coming for their master’s degrees—some of which lasted only nine months—were reluctant to furnish an apartment for such a short period.
This situation persisted in the following years, and we saw it repeatedly as more friends from South America and other countries arrived. We realized there was a gap in the market for a solution that genuinely met the needs of people staying for limited periods.
“The main challenge Erasmus students and young professionals face is the temporary nature of their stays.”
Flaternity focuses on offering coliving spaces for Erasmus students and young professionals. What are the main challenges this group faces when looking for housing, and how does Flaternity address them?
The main issue Erasmus students and young professionals encounter is the temporary nature of their stays. At Flaternity, we house many Erasmus students who come to Barcelona for three, six, or, in some cases, nine months. This is where solutions like ours can provide real value.
Students have access to fully furnished rooms with all utilities included (water, electricity, Wi-Fi, and, in some cases, gas). Additionally, they benefit from a dedicated maintenance and cleaning team, available to assist with any issues during their stay.
These solutions not only enhance their experience in the city but also increase the value of their stay.
Flaternity focuses on large apartments in need of renovation to create functional living spaces. Why do you choose this type of property, and what value do they provide for both owners and tenants?
We believe that the real estate sector must adapt to the new lifestyles of younger generations. As a result, many large apartments in city centers that require renovations are no longer attractive to new families. This is where we, as an operator, can add significant value to property owners.
We look for apartments to lease and, in some cases, purchase, to renovate them and create what we call “coliving apartments”—optimized spaces for shared living. For example, in an apartment that previously had a 40-square-meter living room, we can redistribute the space to add an extra bedroom while maintaining a 20-square-meter common area.
Our value proposition for property owners is particularly compelling because Flaternity signs the lease agreements, handles the renovations, and manages the property throughout the lease period. We also invest in renovations, ranging from €20,000 to €100,000, ensuring that property owners achieve higher returns without having to manage the property themselves.
Ultimately, it’s a win-win situation: owners find a profitable use for properties that would otherwise remain obsolete, and tenants gain access to well-equipped rooms in a city with high demand for temporary housing.
What kind of renovations does Flaternity carry out, and how do you adapt properties to create functional and attractive spaces for tenants?
At Flaternity, we carry out both full-scale renovations and targeted improvements in kitchens and bathrooms. Our primary goal is to optimize the layout of the apartment and renovate it to meet all necessary living and comfort standards.
Additionally, we are currently working on two commercial property conversions, transforming them into residential units. In total, we are converting 360 square meters of office space into 19 rooms to meet the growing demand for temporary student accommodation in Barcelona.
Last year, Flaternity advised an investment group on purchasing properties to generate returns. How is this collaboration model structured, and what benefits do both parties gain from these agreements?
Last year, we closed a deal with an investment group to purchase our first apartment in Barcelona, and this year, we have acquired two more. The value proposition for the investment fund is based on acquiring properties that have remained vacant and on the market for several months and converting them into coliving apartments.
As mentioned earlier, the real estate sector must adapt to modern lifestyle trends. More and more young professionals and remote workers are looking for temporary housing solutions. This makes apartments of 160 square meters or larger particularly attractive to real estate investors.
The business model works as follows: Flaternity operates the assets, while the investment fund acquires centrally located apartments with potential for renovation. Flaternity then takes care of refurbishing, furnishing, and transforming them into coliving spaces.
At Flaternity, we guide our investors throughout the entire process: from property scouting and financial structuring to documentation management, including both purchase and renovation phases.
“Property owners find a profitable solution for previously obsolete apartments, while tenants access well-equipped rooms in a city with high demand for temporary housing.”
Seasonal or mid-term rental regulations have recently been a challenge in Catalonia, with a decree law being approved and subsequently overturned. How would such regulations affect Flaternity, and how should this sector be regulated, in your opinion?
Coliving falls within a broader real estate trend known as flex living, and we acknowledge that, at some point, it will need regulation. Ideally, this would be done with input from a group of real estate experts who understand the benefits that flex living brings to cities. However, what we believe is truly necessary is combating illegal practices.
Municipalities should focus more on addressing illegal tourist rentals and ensuring that all rental spaces meet proper housing standards. That’s where most of the regulatory efforts should be directed. While a well-structured regulatory framework will eventually be needed for the flex living sector, in the short term, the priority should be tackling the widespread illegal activity within the market.
Flaternity currently operates in Barcelona and Valencia but plans to expand to cities like Madrid, Málaga, and Granada. What factors do you consider when selecting new cities for expansion, and what are your forecasts and next steps for 2025?
In 2025, we aim to consolidate our brand and the expansion we’re experiencing in Barcelona during the first half of the year, with the goal of closing the year with our first coliving building in the city. Last year, we launched our first rooms in Valencia, a location with tremendous potential due to its large student population. We also see significant opportunities in cities like Madrid, Málaga, and Granada.
Since our focus is on Erasmus students and professionals coming to Spain, many of our expansion decisions are based on available data regarding the mobility of these groups.