Coliving, Multiliving, Senior Living—variations of the Living market are becoming increasingly attractive for real estate investment, as they cater to the evolving needs and lifestyles of different population groups. The real estate sector is expanding its focus, considering factors such as transience, age, mobility, and seasonality to tap into new business opportunities.
According to industry reports, 48% of real estate investors in the European Union plan to increase their involvement in Living sector projects over the next three years. Currently, only about one-third of these investors have less than 25% of their assets in this market, largely due to the lack of clear legal frameworks around these new developments.
What is the “Living Market”?
The Living market refers to shared housing solutions for people with similar ages, interests, hobbies, or lifestyles. This concept includes more familiar types like student accommodation, which offers shared facilities such as gyms, swimming pools, and coworking spaces. It also encompasses more specialised options like Senior Living, designed for older adults who prefer premium housing options over traditional “retirement homes,” offering custom healthcare, leisure, and fitness facilities.
What is “Flex Living”?
Within the broader Living market, Flex Living has emerged as a major trend that could reshape real estate investment. This concept is centred around smart space optimisation, appealing to digital nomads and expats who seek “all-inclusive” packages for accommodation, workspaces, fitness, and recreational activities. Flexibility is key here, as users can live in the property for part of the year, pay for tailored services, and share communal areas with like-minded individuals. This temporary model is gaining traction in other regions but is still in its infancy in Spain.
The Living Market in Spain
Since Living market developments offer a blend of services and housing, the Spanish legal system has yet to fully define how to regulate this type of property. Investors face challenges due to the lack of legal clarity on land use classification. For example, student residence land is classified as accommodation, but coliving—a hybrid of renting and lodging—does not yet have a clear definition.
As with many significant social transformations, the Living market is likely to continue growing as a key real estate innovation, gradually developing its own legal and economic frameworks to meet the needs of both investors and users. It is estimated that the supply of coliving spaces in Spain could double within the next two years, reaching nearly 27,000 beds, with Madrid leading the way in new projects.
