The Rise of Build to Rent (BtR) in the Spanish Real Estate Market
Pablo Rodríguez-Losada, Macaco’ Director of Sales and Marketing, recently participated in a panel discussion titled «Navigating the Transition to Turnkey Rental Properties» at The District 2023, an international real estate investment summit held in Barcelona from September 20th to 22nd. This panel focused on the transition from development for sale to construction for long-term rental properties in the real estate sector, highlighting the challenges and opportunities of turnkey rental projects for investors seeking long-term profitability.
The Growing Popularity of Build to Rent (BtR)
Pablo Rodríguez-Losada emphasized how the concept of «build to rent» has gained popularity in the Spanish real estate market in recent years, especially in densely populated urban areas with high demand for rental housing. He highlighted the tremendous potential for development in Spain, stating that currently, 15% of Macaco’ residential projects are BtR.
According to Rodríguez-Losada, BtR involves the construction of high-quality properties specifically designed for long-term rental, providing a turnkey solution for tenants. «These properties are planned with the needs of tenants in mind, resulting in more functional spaces,» he pointed out. He also emphasized the significant financial stability that BtR offers institutional investors and smaller family offices. BtR assets provide a consistent and predictable income stream over time, allowing investors to diversify their portfolios and mitigate risks.
The Key to Successful BtR Development
«To achieve success in BtR development, Spain needs more than just potential. It needs market leaders who can bring knowledge of the Spanish market and collaborate with foreign investors,» stated Pablo Rodríguez-Losada. He advised that careful selection of strategically located properties with high demand and attractive design is essential for the success of these projects.
Macaco has positioned itself as a leading company and a key industrial partner for the design and execution of turnkey rental housing projects. Over the past four years, the company has closed deals on 13 BtR projects, comprising 1,700 units, and has already delivered more than 800 units to five institutional partners, amounting to over €300 million in sales.
The panel discussion «Navigating the Transition to Turnkey Rental Properties» also featured industry experts Mario Andrés, Managing Director of Medan Asset Management, and Pablo Paramio, CEO of Avalon Properties. The session was moderated by Estefanía Iceta, Partner at Garrigues law firm.