Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Spain

Spain

In Spain, the revenue of the Residential Real Estate Leases market market is forecasted to reach US$60.76bn in 2024.
Apartment Leases hold the majority share of the market with a projected market volume of US$31.98bn in the same year.
It is expected that the revenue will exhibit an annual growth rate (CAGR 2024-2029) of 2.07%, leading to a market volume of US$67.33bn by 2029.
Residential real estate leases in Spain are experiencing a surge in demand as foreign investors seek attractive long-term rental opportunities in popular cities like Barcelona and Madrid.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Spain is experiencing significant growth and development.

Customer preferences: In recent years, there has been a noticeable shift in customer preferences towards renting rather than buying properties in Spain. This can be attributed to several factors, including changing lifestyles and preferences, a desire for flexibility, and the high cost of homeownership. Renting allows individuals to have more freedom and mobility, as well as the ability to live in desirable locations without the long-term commitment of purchasing a property. Additionally, renting provides an attractive option for younger generations who may not have the financial means to buy a home.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Spain is the increasing demand for rental properties in urban areas. Cities such as Madrid and Barcelona are experiencing a surge in population, driven by factors such as job opportunities and a vibrant cultural scene. As a result, the demand for rental properties in these cities is outpacing supply, leading to rising rental prices and a competitive rental market. Another trend in the market is the emergence of co-living spaces and shared housing options. With the rising cost of living and the desire for community, many individuals are opting to live in shared spaces where they can share the cost of rent and utilities. Co-living spaces often offer additional amenities such as common areas, cleaning services, and social events, making them an attractive option for young professionals and students.

Local special circumstances: Spain has a unique culture and lifestyle that influences the Residential Real Estate Leases market. The country is known for its vibrant street life, outdoor dining, and socializing, which has led to a preference for properties with balconies, terraces, or access to outdoor spaces. Additionally, the warm climate in many parts of Spain has contributed to the popularity of properties with swimming pools or proximity to the beach.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Residential Real Estate Leases market in Spain. The global financial crisis in 2008 had a significant impact on the Spanish housing market, leading to a decrease in property prices and an increase in foreclosures. As a result, many individuals turned to renting as a more affordable and flexible alternative to homeownership. Furthermore, Spain has experienced steady economic growth in recent years, with a strong tourism sector and a growing economy. This has attracted foreign investors and increased demand for rental properties, particularly in popular tourist destinations such as the Costa del Sol and the Balearic Islands. In conclusion, the Residential Real Estate Leases market in Spain is experiencing growth and development driven by changing customer preferences, urbanization trends, and unique local circumstances. The market is expected to continue to evolve as demand for rental properties in urban areas remains high and new housing options such as co-living spaces gain popularity.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.