In a country where renting was historically seen as a loss of money and time, with an expectation of eventual ownership, new trends indicate a significant shift in the real estate market.

According to data from the National Institute of Statistics for 2024, one in five households in Spain is now rented, reflecting a rising demand for rental properties alongside evolving market supply dynamics.

The International Real Estate Fair in Madrid (SIMA) currently showcases various market agents exploring modern investment models, notably in granular rental practices and affordable housing development.

These trends thrive alongside traditional methods, such as individual investors utilizing personal savings to purchase properties or companies constructing buildings for rental purposes.

The concept of 'granular renting', as described by Miguel Morales, partner at Almond Real Estate, involves the large-scale acquisition and rental of individual units rather than entire buildings.

This strategy, previously leveraged by major U.S. firms, is gaining traction in Spain with investments reaching hundreds of millions annually.

Morales notes that while this approach is new to Europe, it has been effectively employed in the U.S. since its inception by firms like Blackstone, which began purchasing properties on an individual basis.

Laura Fernández, General Director of the Association of Landlords of Rental Housing (ASVAL), emphasized the potential for growth in Spain's rental market, where 90% of rental properties are owned by individuals, leaving a small market share for larger companies.

Successful granular rental management relies heavily on professional administration, a sentiment echoed by Henry Gallego, CEO of Ktesios Socimi, who focuses on affordable rental housing in the metropolitan area.

The management of dispersed properties has been facilitated by technological advancements, as highlighted by Paco Campos, founding partner of WeRent, who manages over 22,000 homes across 2,300 municipalities in Spain.

This efficiency may assist the Ministry of Housing in its goal of providing 45,000 new social housing units to public housing stocks.

The fair also delves into the growing trend of social impact investments in housing.

Myriam Estarrona, CEO of Open Value Foundation, defined such investments as those that aim to generate measurable positive social and environmental impacts alongside financial returns.

Due to rising rental costs and housing crises, these investments seek to develop social housing resources and affordable rentals.

Javier Basagoiti, president of the Association of Listed Real Estate Investment Companies (ASOCIMI), discussed Primero H, a social investment company targeting vulnerable populations and individuals experiencing homelessness.

He indicated that they currently provide rental options in several provinces that align with or are below the prices set by the Ministry of Housing.

The social impact investment representatives at SIMA expressed their intent to remain profitable and provide returns to investors, thus attracting capital for affordable housing initiatives.

Their approach focuses on developing long-term housing portfolios rather than engaging in rapid property transactions, as articulated by Alejandra Mora, director of Alas Vivienda Asequible.

Despite these emerging investment models, the real estate landscape in Spain remains predominantly characterized by individual landlords, with private investors constituting one in four visitors at SIMA.

Eloy Bohúa, CEO of Planner Exhibitions, the organizers of SIMA, acknowledged that the trend of non-professional investors is growing by one or two percentage points each year.

These investors often prioritize security over profitability, seeing real estate as a tangible asset.

Bohúa underscored the importance of providing information about both opportunities and potential risks, particularly for non-professional market participants.