Explore Cushman & Wakefield's comprehensive analysis of Europe’s living sector through 2040. Our latest report delves into the demographic and societal trends driving unprecedented growth, the challenges of meeting housing needs, and strategic insights for investors and developers.
Unpacking Europe's Living Revolution
Tom McCabe • 20/06/2024
Key Highlights:
- Growing demand across private rented, student accommodation, senior living, and affordable housing segments.
- Projected demographic shifts and their impact on housing needs.
- Investment opportunities in key European regions.
- Policy recommendations to support housing development.
- Download the full report now and stay ahead in the evolving living sector landscape.
In today’s European housing sector, Spain, especially in cities like Madrid and Barcelona, stands out as a key market for real estate investment. This report highlights how demographic growth, urbanization, and increasing demand for housing, particularly rentals, are driving unprecedented interest in the Spanish market.
Spain's Living Market Context
Demographic Growth: Spain is identified as a promising country for living sector investments due to its growing population, urbanization potential, and aging demographic. It's highlighted as one of the attractive markets, with demographic trends suggesting increased demand for various types of housing, particularly in urban areas.
Senior Living Demand: With a rapidly aging population, there is an anticipated rise in demand for senior living and healthcare facilities.
Rent Regulation: Spain has recently enacted rental regulations allowing regions to designate "rent-stressed areas" with caps on rent increases, aiming to address affordability issues.
Investment Appeal: The Spanish market, particularly in cities like Madrid and Barcelona, is increasingly attractive for institutional investment due to the stable demand for rental housing. The country has shown growth in living sector investments over recent years.
Madrid
Urbanization and Population Growth: Madrid is expected to see substantial population growth, with forecasts estimating a 10.8% increase by 2040, translating to approximately 764,000 additional residents.
Living Sector Investment: The demand for diverse housing types, such as Build-to-Rent (BTR) and co-living spaces, is expected to rise as the population grows, supporting liquidity in the living sector.
Barcelona
Population and Urbanization: Barcelona's population is also projected to grow by 8.7%, adding around 510,000 residents by 2040.
Housing Affordability and Rent Regulation: The city is affected by Spain’s rent-stressed area designations, which have influenced rental market supply and affordability.
Demographic dynamics, combined with urban population growth, are driving demand in cities like Madrid and Barcelona. While rental regulations and supply challenges pose certain obstacles, the long-term outlook suggests ongoing development and robust opportunities for investors in this sector. Download our report to know more.
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