“Rental property is here to stay”. That was the powerful message from Concha Osácar, the founder of Azora, who added that demand for rental housing from young people has increased by 10% in the last year, up from 36% to 46%. In her opinion, 20% of the total housing stock, which comprises around 15 million main homes in total, will be used for rental over the next few years, up from the current level of 15%.
At the ‘I’ real estate forum held yesterday at IESE, organised by Aguirre Newman and Tinsa, Osácar said that the rental market is growing. Based on her experience, rental contracts are perceived to offer greater stability and occupancy rates are beginning to increase. She also highlighted the arrival of foreign capital (players) willing to invest in rental housing.
In fact, she called for institutional buyers to play a greater role. “The basic model focuses on the sale of homes to individuals, but we should (also) encourage sales to institutional investors”. In her opinion, foreign financing is available and (those overseas investors) are willing to buy portfolios of property and then offer them on the rental market.
Osácar said that 15% of the stock of 15 million main homes are currently used for rental, but she thinks that it would be reasonable for this percentage to increase to 20% over the next few years. According to the most recent data published by the Bank of Spain, the percentage of owned homes has decreased to account for 77.7% of the housing stock, returning to levels last seen 26 years ago. By contrast, rental homes have increased by more than 36% in the last 10 years.
Original story: Idealista (by P Martínez-Almeida)
Translation: Carmel Drake
Translation/Summary: Carmel Drake