Flex living is moving beyond niche status to become an increasingly visible component of Spain’s living market. According to CBRE’s Flex Living Investor Survey 2026, the investors surveyed have more than 3 billion euros in equity to deploy in this segment over the next five to seven years. More than half also aim to build portfolios of more than 1,000 units. (CBRE)
The figure helps explain the change in scale. Interest is no longer focused solely on developing isolated assets, but on creating platforms and portfolios capable of growing, professionalising management and attracting institutional capital. At the same time, this growth raises the bar: location, entry price, regulation and operational capacity are becoming as important as identifying a demand trend.
What flex living is and what demand it aims to cover
According to CBRE itself, flex living encompasses different flexible accommodation formats, from urban coliving to corporate living or vacation living solutions. Their common feature is that they offer flexible-length stays together with services and shared spaces, although the specific configuration depends on the asset and its urban-planning framework.
It should not be confused with build to rent — BTR. The latter is based on residential housing designed specifically for rental, while a significant part of flex living is developed on tertiary-use land and may operate under hospitality regulations. This makes it possible to serve temporary demand from profiles such as relocated professionals, expatriates or people going through transitional stages, but it also introduces greater operational and regulatory complexity.
Nor is it an equivalent alternative to conventional housing. It can broaden accommodation options for certain needs, but it does not replace permanent residential supply.
From 16,500 to more than 40,500 beds
The expansion of supply reflects the growth of the segment. CBRE estimates that the operating stock of flex living in Spain has multiplied eightfold since 2020, reaching around 16,500 beds, while the pipeline could take that figure above 40,500 by 2028.
Growth is coming through several channels: new-build developments on tertiary-use land, the acquisition of already operating assets and the conversion of buildings with other uses, especially offices.
This last strategy helps explain the interest of value-add investors — those seeking to create value through the development, transformation or repositioning of an asset — who continue to predominate in the sector. However, CBRE also detects growing participation from core and core plus profiles, usually associated with relatively lower-risk strategies.
Transactional activity confirms this progress. Flex living reached 790 million euros in investment in 2025 and, in the first half of 2026 alone, added another 400 million, mainly in projects located in peripheral areas of Madrid.
Madrid leads, but capital is looking for new cities
Madrid remains the main market: 100% of the investors surveyed by CBRE identify it as a priority destination.
However, growth is beginning to spread. The group of Tier II cities — Valencia, Málaga and Bilbao — reaches a 91% preference, compared with 30% for Tier III cities and 24% for Barcelona.
The trend shows that capital is starting to seek scale outside Spain’s main market, although each city presents different supply, regulatory and demand dynamics.
This process was already visible in 2025 data. As we previously explained on the Urbanitae blog, flex living had grown with particular intensity within operational residential, with a strong increase in stock and the expected pipeline.
Why it attracts investors
CBRE identifies three main advantages compared with BTR. Some 36% of respondents highlight the possibility of incorporating shorter stays; 33%, greater flexibility to update rents; and 32%, the lower cost that tertiary-use land can present compared with residential land.
But these advantages come with trade-offs.
Higher turnover makes it possible to adapt prices and length of stay, but it can also increase operating costs. Tertiary-use land can reduce the entry price, but it requires particularly careful analysis of which uses planning rules allow. And greater contractual flexibility does not mean that rents can rise indefinitely: occupancy, competition and users’ purchasing power continue to set limits.
That is why flex living has a more intensive operational component than conventional residential rental. Having a good property is not enough. The operator’s ability to manage occupancy, turnover, services, prices and costs is a central part of the investment thesis.
From isolated projects to institutional platforms
The entry of major investors helps explain the extent to which the market is gaining scale.
In June 2026, Bain Capital, together with Momentum and operator Episode, announced the development of 3,500 new units, with an approximate investment of 600 million euros between equity and debt. The partnership already managed around 1,600 beds and expects to build a joint portfolio valued at around 800 million.
The model also illustrates the sector’s growing specialisation: Bain mainly provides the capital, Momentum develops the projects and Episode is responsible for operations. It is not an isolated case. Grupo Lar and JP Morgan are working on another portfolio of approximately 5,000 beds and an investment close to 600 million.
CBRE reflects the same search for scale: transactions of between 30 and 50 million euros account for almost half of investor interest, while approximately one third sits between 10 and 30 million.
Océanika: converting an asset for a new use
Urbanitae has also participated in this segment. The Océanika project, in Torremolinos, proposed the acquisition and transformation of a former hotel into a flex living complex with 180 rooms and 210 beds, accompanied by a retail unit of more than 2,000 square metres.
The transaction is an example of one of the strategies driving the sector: converting an existing asset to adapt it to new forms of accommodation. In this case, the project also combined a developer, bank financing, a specialised operator and an expected exit to an institutional buyer.
More capital, but also higher requirements
The growth of flex living does not eliminate the difficulties involved in executing transactions. According to CBRE, the main barrier for investors is finding well-located assets — 36% of responses — followed by acquisition price — 31% — and regulation — 17%.
The latter is especially relevant because flex living does not constitute a homogeneous legal category throughout Spain. The permitted use and operating conditions depend on the type of land, the asset and regional and municipal regulations.
The market is therefore entering a different phase. The opportunity is already known and capital is available. The challenge lies in finding assets at suitable prices, achieving scale without sacrificing location and having operators capable of turning the product’s flexibility into sustainable occupancy and income.
Flex living is gaining weight within Spanish real estate, but its consolidation will depend less on continued growth in investor interest and more on how projects are executed. As more capital enters the market, the difference will increasingly lie in the asset, regulation, entry price and quality of management.
