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 the heading of “alternative assets” today constitutes the strategic heart of investment: 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 metres, but a combination of housing, services and community. It is the professionalised response to a context marked by supply shortages, labour mobility and profound demographic changes.

What Do We Mean by Living and Flex Living?

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

Within this universe, flex living occupies a privileged position. Oriented towards stays of between 1 and 11 months, it offers fully equipped units with a “single bill” that includes cleaning, wifi and amenities. It is the star product for digital nomads and relocated professionals, offering returns superior to traditional housing, especially when developed on commercial or hotel land.

A Global Market in Institutional Expansion

In Europe, investment in Living reached 53,900 million euros in 2024, already representing a quarter of total real estate. The asset has gone from being a niche to a defensive and “core” value for institutional capital. While in the US, multifamily maintains occupancy rates above 90%, in Europe flex living provides a scalability and cash flow stability that attracts major 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 more than 4,000 million euros, accounting for 54% of the country’s total real estate transactions.

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

Geography of Opportunity: Beyond Madrid and Barcelona

While Madrid acts as the absolute epicentre 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 investment and stands out for an advanced regulatory framework.
• Malaga and Seville: Driven by technological growth and tourism, they present an unmet demand for flexible accommodation for professionals.
• Zaragoza and Cordoba: Logistics and services nodes where the ageing 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 tourist 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 rental (facing greater regulatory pressure), PBSA (students) remains the most resilient asset.

The new frontier is “Affordable Living”. This model seeks to optimise costs through asset reconversion and public-private partnerships to offer rents that do not exceed 30% of young people’s and workers’ incomes, combining operational efficiency with a necessary social function.

Regulation and Technology: The Competitive “Moat”

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

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

Conclusion: Towards a Structural Role

The prospects for flex living in Spain are robust, with projected annual growth of 15% through 2030. We are not facing a passing trend, but a structural response to the affordability crisis and new living 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.