Investment in co-living assets in Spain reached €433 mln in H1 2022, with the addition of 3,900 beds, accounting for 18% of total spending on living, according to CBRE data.
This compares to only 3% of investments in co-living, or over €95mln in the whole of 2021.
Demand far outstrips supply, as the Covid-19 pandemic has pushed young people aged 26-40 to seek a social component in their places of residence.
The co-living market is currently undergoing an intense moment of equity raising and M&A between operators, mostly due to the arrival of international operators, especially from North America and Asia.
Javier Caro, director of co-living at CBRE Spain, said: ‘Co-living is one of the star niches within the living segment, with assets within the city that are already operating and on the outskirts of the city that we will see open in the last 3 months of 2022. Co-living is a way of living that is based on the premise of seeing housing as more than just accommodation, as a service. In these assets, the location and the price €/m2 is no longer the only important thing for the tenant, giving special importance to the experience and the community.’
In Q1 2022, investment in co-living was around €35mln, with operations centered mainly in Madrid and Valencia.
The biggest deal in H1 2022 was the acquisition by real estate company Greystar of 2,500 flexible accommodation units in Madrid from global alternative investment firm King Street.
Announced in June, the deal comprises of three buildings in Rivas, San Sebastián de los Reyes and Valdebebas, currently under construction and targeting a BREEAM rating of "Very Good."
Amenities for tenants include a gym, co-working space, pool, outdoor space and a dedicated concierge service.
The sector is expected to continue to grow to 5,000 beds by 2024 (400% growth), with 75% of the new beds located outside the first rings of the cities of Madrid, Barcelona and Malaga.