Flex Living in Spain: From Emerging Niche to Real Estate Market Pillar

The last decade has witnessed an unprecedented metamorphosis in the global real estate market. What was once classified under “alternative assets” now constitutes the strategic heart of investments: the Living sector. Under this umbrella, models such as flex living, coliving, student residences (PBSA), senior living, and Build to Rent (BTR) are grouped together.

Their common trait is disruptive: it is no longer just about selling square meters, but about a combination of accommodation, services, and community. It is the professionalized response to a context marked by supply shortages, labor mobility, and profound demographic changes.

What Do We Mean by Living and Flex Living?

The Living concept encompasses residential solutions that accompany the individual at every stage of their life cycle. Compared to the traditional ownership model, these models favor shared use, centralized services, and above all, contractual flexibility.

Within this universe, flex living occupies a privileged position. Geared toward stays between 1 and 11 months, it offers fully equipped units with a “single bill” that includes cleaning, Wi-Fi, and amenities. It is the flagship product for digital nomads and relocated professionals, offering higher yields than traditional housing, especially when developed on commercial or hospitality land.

A Global Market in Institutional Expansion

In Europe, Living investments reached €53.9 billion in 2024, already representing a quarter of the total real estate market. The asset has gone from being a niche to a defensive and “core” value for institutional capital. While in the USA multifamily maintains occupancy rates above 90%, in Europe flex living offers scalability and cash flow stability that attracts large funds due to its counter-cyclical nature.

The Spanish Laboratory: Overflowing Demand and Active Capital

Spain is today one of the most dynamic stages of this transformation. In 2024, Living represented over €4 billion, constituting 54% of the country’s total real estate transactions.

This boom is not coincidental. It responds to a structural deficit: the rental supply has decreased by 65% in Madrid and 59% in Barcelona over the last five years. With an average emancipation age close to 30 years and a steady increase in single-person households (reaching 29% by 2035), flex living presents itself as the necessary release valve for a market under pressure.

Geography of Opportunity: Beyond Madrid and Barcelona

While Madrid acts as the absolute epicenter with the largest volume of operational units, the opportunity map is rapidly expanding:

• Valencia: Consolidated as the third national hub, it has captured 8% of Living investments and stands out for an advanced regulatory framework.
• Malaga and Seville: Driven by technological and tourism growth, they present unmet demand for flexible housing for professionals.
• Zaragoza and Cordoba: Logistics and service nodes where the aging of the residential stock opens the door to medium-stay projects.
• Balearic and Canary Islands: Critical markets where flex living is already an essential tool for housing essential workers and retaining talent in areas of high tourism pressure.

Asset Classes: From BTR to “Affordable Living”

The ecosystem is diversifying to cover all profitability niches. While BTR focuses on families and long-term rentals (facing greater regulatory pressure), PBSA (students) remains the most resilient asset.

The new frontier is “Affordable Living.” This model seeks to optimize costs through asset conversion and public-private collaboration to offer rents that do not exceed 30% of the income of young people and workers, combining operational efficiency with a necessary social function.

Regulation and Technology: The Competitive “Moat”

The great challenge of the sector in Spain remains regulatory fragmentation. While Catalonia and Madrid have taken steps to regulate coliving and “shared residences,” legal uncertainty continues to require extreme due diligence.

However, the true differentiating element for the winners of this sector will be professional operations. Technology (AI, digital twins, and predictive maintenance) enables reducing operational costs by up to 50%. Looking toward 2030, intelligent data management and compliance with ESG criteria will not be optional, but the only path to accessing the “dry powder” of institutional capital.

Conclusion: Toward a Structural Role

The prospects for flex living in Spain are solid, with projected annual growth of 15% until 2030. We are not facing a passing fad, but a structural response to the affordability crisis and new lifestyle models. Those operators capable of integrating design, technology, and operational excellence will be the protagonists of the greatest transformation the Spanish residential sector has experienced in decades.