Spain Condominiums and Apartments Market Size (2024 - 2029)

The Spanish Condominiums and Apartments Market is experiencing a resurgence as an attractive investment destination following the initial slowdown due to the COVID-19 pandemic. The market size is influenced by various factors, including the recovery of home prices and the unique rental dynamics within the country. Despite having one of the lowest rental rates in Europe, certain provinces exhibit higher rental percentages, particularly in larger cities like Barcelona and Madrid. Additionally, Spain has a significant proportion of its population living in apartments, with a notable percentage of properties available for sale being flats, highlighting the distinct characteristics of the market.

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Market Size of Spain Condominiums and Apartments Industry

Spain Condominiums And Apartments Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.40 %
Market Concentration Medium

Major Players

Spain Condominiums And Apartments Market Major Players

*Disclaimer: Major Players sorted in no particular order

Spain Condominiums & Apartments Market Analysis

The Spanish Condominiums and Apartments Market is poised to register a CAGR of 5.4% during the forecast period.

  • The residential real estate market came to a halt due to the COVID-19 pandemic, as the government implemented lockdowns and citizens were forced to stay at home. Because of rising returns, Spain again appeared as a potential investment destination after slowing down due to the COVID-19 outbreak.
  • According to the Bank of Spain, Spanish home prices increased by 2.59% (-0.78% inflation-adjusted) to EUR 1,662 per sq. m (USD 1,775) during Q3 2021, marking the country's strongest performance in two years. In Q3 2021, house prices rose somewhat on a quarterly basis by 0.75% (or 0.45% when adjusted for inflation).
  • In terms of autonomous areas, Canarias experienced the highest year-over-year price growth, at 6.95%, followed closely by Cantabria, the Balears, Melilla, Murcia, Andalusia, Galicia, and La Rioja.
  • Spain has one of the lowest rent rates in all of Europe, with only 23% of households renting their houses. Greater provinces have greater rent rates. The ratio of renters is 26% in Barcelona and 24% in Madrid, the two largest cities. This percentage is less than 15% in more rural or smaller urban regions.
  • According to Eurostat, Spain has one of the largest proportions of flat dwellers in the continent. With the exception of Latvia, the highest proportion of people in the EU live in flats-nearly two-thirds of the population. The percentage is around half in Italy and a little over a third in France. In the UK, only 15% of people live in apartments. According to Fernando Encinar of the Spanish real estate website Idealista, 65% of properties for sale in Spain are apartments, as opposed to only 25% on the UK website Rightmove.

Spain Condominiums & Apartments Industry Segmentation

A private residence in a building or house divided into several separate dwellings is known as an apartment. A condominium (also known as a "condo") is a large property complex made up of individual units owned separately. Typically, ownership includes a nonexclusive interest in certain "community property" managed by the condominium management.

A complete background analysis of the Europe condominiums and apartments market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

Spain's Condominiums and Apartments Market is segmented by City (Madrid, Catalonia, Valencia, Barcelona, Malaga, and Other Cities). The report offers market size and forecasts in value (USD billion) for all the above segments.

By City
Madrid
Catalonia
Valencia
Barcelona
Malaga
Other Cities
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Spain Condominiums and Apartments Market Size Summary

The Spanish condominiums and apartments market is experiencing a resurgence, driven by a combination of domestic and international interest. Following the initial slowdown due to the COVID-19 pandemic, Spain has re-emerged as an attractive investment destination, with increasing home prices and a significant proportion of the population living in apartments. The market is characterized by a high level of foreign investment, particularly from British, German, and French buyers, who are drawn to the country's appealing lifestyle and favorable property conditions. The demand for residential real estate, especially apartments, has been bolstered by the easing of travel restrictions, allowing foreign buyers to return to pre-pandemic purchasing levels. This trend is supported by the presence of both global and regional players in a highly competitive market, with major companies actively seeking new opportunities and partnerships to expand their portfolios.

The market dynamics are further influenced by government policies aimed at addressing housing affordability and rental price increases. Recent legislative measures have introduced rent controls and tenant protections, reflecting the government's commitment to combating rising housing costs and ensuring equitable access to housing. These policies are part of a broader strategy to stabilize the market and support sustainable growth. The market is expected to regain normalcy by the end of 2023, with ongoing developments and collaborations, such as the build-to-rent initiative between Layetana Living and Aviva Investors, indicating a robust pipeline of residential projects. As companies prepare to meet future demands, the Spanish condominiums and apartments market is poised for continued growth, driven by both domestic and international factors.

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Spain Condominiums and Apartments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

      2. 1.2.2 Market Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Industry Value Chain Analysis

    5. 1.5 Technological Innovations in the Market

    6. 1.6 Government Regulations and Initiatives in the Industry

    7. 1.7 Insights into Rental Yields in the Segment

    8. 1.8 Insights into Construction Costs

    9. 1.9 Insights into Investment

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By City

      1. 2.1.1 Madrid

      2. 2.1.2 Catalonia

      3. 2.1.3 Valencia

      4. 2.1.4 Barcelona

      5. 2.1.5 Malaga

      6. 2.1.6 Other Cities

Spain Condominiums and Apartments Market Size FAQs

The Spain Condominiums and Apartments Market is projected to register a CAGR of greater than 5.40% during the forecast period (2024-2029)

Dragados Sociedad Anonima, Ferrovial Construccion SA., Constructora San Jose SA, Acsa Obras E Infraestructuras SAU and Ortiz Construcciones Y Proyectos SA are the major companies operating in the Spain Condominiums and Apartments Market.

Spain Condominiums and Apartments Report Snapshots

SPAIN CONDOMINIUMS AND APARTMENTS Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)