Coliving Investment Soars to €430 Million in First Half of the Year

Coliving Investment Soars to €430 Million in First Half of the Year

06/09/2022 |

Investment in Coliving assets continues to grow. During the first half of the year, 3,900 new beds were transacted and an investment of 433 million euros was recorded, accounting for 18% of total investment in Living, according to CBRE data. This figure represents a thousand-fold increase on the investment achieved in the first quarter – around 35 million euros – and a five-fold increase on the investment captured by this segment in Spain in 2021 as a whole – around 100 million euros -.

This segment has become a booming model due to the impact of the pandemic among 26-40 year olds, an age group in which interest in finding a social component in their places of residence has mainly grown.

In 2021, these residential assets accounted for only 3% of the total amount invested in the Living segment, exceeding 95 million, but represented a turning point as only one-off transactions had been recorded to date (not even 1% of the total). However, the Coliving market is currently in an intense moment of equity raising and M&A between operators with a great projection of new platforms being created, due to the arrival of international operators, especially of American and Asian origin.

75% of the new beds will open outside the first rings

of the cities of Madrid, Barcelona and Malaga.

In the first quarter of 2022, investment in Coliving was around €35 million, with operations centred mainly in Madrid and Valencia. During the second quarter, the accumulated investment has shot up to more than 430 million euros. This increase is largely due to the rotation of King Street’s capital in the joint venture with Greystar in which Greystar itself has purchased the 2,500 beds planned for Madrid in Rivas, San Sebastián de los Reyes and Valdebebas.

With demand far outstripping current supply, the sector is expected to continue to grow to 5,000 beds by 2024 (a growth of 400%). 75% of the new beds will open outside the first rings of the cities of Madrid, Barcelona and Malaga. “Coliving is one of the star niches within the Living segment, with assets within the city that are already operating and on the outskirts of the city that we will see open in the last three months of 2022,” explains Javier Caro, Director of Coliving at CBRE Spain. He adds that “Coliving is a way of living that is based on the premise of seeing housing as more than just accommodation, as a service. In these assets, location and price €/m2 is no longer the only important thing for the tenant, giving special importance to the experience and the community”.

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