Investing in build to rent

Malaga build to rent

Malaga build to rent Photo: Wikimedia CC / Cesnaro98z

Malaga will have 1,400 new properties that will be exclusively for rental purposes.

That is the data that has been reported during a meeting organised by CBRE Trends in Living in Madrid.

During the presentation of the study, the focus was also placed on the fact that the rental housing stock in institutional hands represents only 5 per cent of the total in Spain, far behind neighbouring countries including Germany, with 34 per cent and France with 23 per cent, where the rental market is far more professional.

Affordable housing is consolidating its position as the main focus for investors and in the first quarter of 2024 accounted for more than two thirds of investment in residential rental housing, with €200 million.

Since 2021, investment in this type of property has grown from €127 million to €935 million in 2023. In the first quarter of 2024, the residential segment accounted for 77 per cent of investment in housing, with €186 million allocated to homes to be built for the rental market and €116 million to homes already built for rent.

“Institutional investors have shown a growing confidence in affordable rental assets, both protected and vacant, as well as in their various formats. It is a product where Spanish banks have shown a strong appetite in the financing of the ‘Plan Vive'”, said CBRE’s Director of Housing in Spain, Javier Kindelan.

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Written by

Kevin Fraser Park

Kevin was born in Scotland and worked in marketing, running his own businesses in UK, Italy and, for the last 8 years, here in Spain. He moved to the Costa del Sol in 2016 working initially in real estate. He has a passion for literature and particularly the English language which is how he got into writing.