Living: evolution of the main segments and outlook
The Living sector has established itself as one of the main drivers of Spain’s new real estate cycle. In a context shaped by the difficulty of accessing housing, demographic changes, and increasing labour and academic mobility, alternative residential formats have gained prominence over other traditional asset classes. The combination of structurally growing demand, a persistent supply deficit, and shifting living habits has boosted investment across multiple segments, with Madrid leading capital inflows and typologies such as multifamily, student residences, and flex living setting the market’s direction.
According to CBRE data, the Living sector attracted approximately €3.73 billion in investment through the third quarter of 2025, representing roughly 29% of all real estate investment in Spain. This volume implies year-on-year growth of more than 50%, consolidating Living as the most dynamic segment in the market. This prominence reflects both the strength of demand and institutional investors’ interest in assets with recurring cash flows and lower volatility.
Multifamily, the structural pillar of Living
Within the Living universe, the multifamily segment (rental housing) remains one of the structural pillars, as noted by the consultancy. Up to September 2025, this format accumulated around €1.34 billion in investment, representing close to 31% of the total Living volume. The growing preference for renting—especially in large urban areas—together with the scarcity of professionally managed supply, continues to drive interest in this type of asset.
Student housing, the most dynamic segment
Student residences (PBSA) have become the most active Living segment in 2025. Investment in this asset class is expected to reach €1.7 billion by year-end, representing an increase of 151% compared to the previous year. This strong growth is driven by sustained structural demand, supported by the rise in international students and the insufficient supply of modern accommodation in the main university cities.
Madrid, the epicentre of Living capital
Madrid reaffirms itself as the leading destination for Living investment in Spain. According to CBRE, the capital accounts for 42% of all capital invested in this segment, well ahead of other markets such as Barcelona or Valencia. Its ability to attract population, international talent, and students—together with a dynamic labour market—strengthens its position as the hub for specialised residential development.
Flex Living, a response to residential mobility
Another format that has gained relevance is Flex Living, which combines short-term renting, services, and contractual flexibility. This segment accumulated close to €590 million in investment, concentrated mainly in Madrid, according to the consultancy’s data. The rise of this model responds to mobile professional profiles, expatriates, and young workers who prioritise flexibility over traditional homeownership.
According to a recent JLL analysis, the Flex Living segment is heading towards a phase of strong expansion and maturity in Spain. In the coming years, the supply of this type of flexible housing will increase significantly. The current stock, at around 19,000 operational beds, is set to double to more than 38,700 places over a three-year horizon, thanks to a pipeline of roughly 19,600 new beds under development. This expansion is driven by a long-term demographic opportunity: projected population growth through 2035 and the sustained increase in single-person households (which could represent around 60% of the total) are boosting demand for more flexible housing solutions. In this context, Madrid is consolidating as the segment’s main epicentre, accounting for around 60% of existing stock and more than 70% of projects underway, reinforcing its role as a magnet for capital and operators. In addition, market momentum is encouraging the entry of new funds and local developers, joining international players and contributing to greater diversification and maturity in the sector.
Senior Living, a segment with medium-term potential
Although it still represents a smaller share of total volume, Senior Living is beginning to show transactional activity in Spain. The progressive ageing of the population and the lack of adapted residential solutions position this segment as a medium- to long-term opportunity. CBRE notes that early transactions are already being recorded, especially in well-connected urban locations.
Economic impact
Beyond investor interest, Living development has a direct impact on the economy. According to an analysis published by idealista, Spain could add up to €14.7 billion to GDP if sufficient investment is mobilised to develop new residential supply, especially in rental housing. This highlights Living’s strategic dimension not only as a financial asset, but also as a key factor for economic growth and social cohesion.
Outlook: sustained and selective growth
The outlook for Living over the coming years remains positive, although shaped by greater selectivity. Investors prioritise established locations, well-managed projects, and assets capable of adapting to new regulatory and sustainability requirements. Segments such as multifamily, student residences, and flex living will continue to attract the bulk of capital, while senior living is emerging as a developing opportunity, as noted by the different consultancies.
