Coliving attracts investor interest in Spain, expected to grow 40% by 2020

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

This new business model has aroused a strong interest from investors.

The real estate sector is one of the most dynamic segments in Spain. Coliving is a new rental modality based on sharing not only housing but also experiences. This new business model has aroused a strong interest from investors and interest in these types of assets is expected to grow 40% in Spain over the next year, according to an Inèdit study.

The explanation for the increase in this segment goes through the profitability it offers. A rental apartment under this business model offers a return between 15% and 20% to the owners, while in a traditional rental apartment the average return in Spain is 6%.

At present, more than 50% of the coliving companies have more than 90 places available, and it is expected that, in the next two years, 80% of the companies that offer this service will have more than 270 beds by choice, another explanation of the increase in interest in this segment.

Laia Comas, CEO of Inèdit, points out that:

“Given the difficulty that exists in large cities to find an ideal apartment and according to the needs of each student or youth, coliving is presented as a solution. We provide an all inclusive accommodation where the tenant should not worry about anything. This model is here to stay and is already a trend in the United States, Australia and the United Kingdom.”

Under this new cultural and social change, where 65% of young people prefer to live for rent to buy their own site and where 70% of this public prefers to live in cities, the main real estate agents and investors are looking to meet the needs of Young professionals and students looking to live experiences beyond the monthly rent of a room with new coliving projects.

People who understand these ages do not seek stability in a particular physical place because they seek constant stimuli or changes and grew in the full development of the collaborative economy, which promotes sharing services, as well as providing facilities. In addition, the job insecurity of these times requires them to be more prepared and be prone to undertake much sooner than previous generations.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.