Key trends in the real estate market

We summarise the main trends in the real estate market that reflect current user needs in terms of housing and workspace.

The real estate sector has long been undergoing a profound transformation. The emergence of real estate proptechThe consolidation of flexible workspaces, the importance of sustainability in construction... These are just some of the most relevant real estate market trends of the moment, which are gradually enriching the classic options of selling or renting a property. rent a dwelling.

Key trends in the real estate sector

Build to rent: the new living habits of millennials

Whenever there is a change of generation there is also, inevitably, a change of habits. The so-called millennials -young people born between 1981 and 1996- understand the concept of "housing" in a different way to their parents. In this sense, models such as coliving -which is an adaptation of coworking to the housing market- are becoming relevant. It is one of the main trends in the real estate market, also gradually in Spain.

On the other hand, renting is gaining more and more weight compared to buying, and this is translating into building developments built expressly to be rented. This is known as build to rent.

This trend has been reinforced in times of pandemic, being one of the few segments of the property market to benefit from the coronavirus crisis, with investors looking for viable alternatives amid a general downward trend. Build to rent, which originated in the UK, is based on the premise of building new homes for rental purposes only. In Spain, the main demand for build to rent products is generated by young people who, faced with the difficulties of finding property ownership and having a job that allows the income levels required, give up and look for quality rental housing in which they can live in the long term. Time will tell if this trend takes off in a country like Spain, where 95% of the homes in the fragmented rental market are in the hands of private owners, but the millennials are very clear: mortgaging themselves and living in the same place all their lives is not for them...

Tenants are not the same as they were 30 years ago, nor can the market offer the same solutions as it did then.

Coworking: the spread of flexible offices

Coworking spaces (a concept born in San Francisco in 2005) have been established in large cities for years. In Barcelona, for example, they already account for six million square metres, which represents 2.4% of the city's total office space. It is also expected that flexible workspaces will make the leap from large cities to less populated and more modest-sized cities. Some of the advantages of coworking over traditional models is the ability to attract professionals who prefer to work in collaborative environments. In addition, this model also makes it easier for companies to reduce or increase the amount of space they need depending on their workload.

Coworking spaces are, in essence, offices shared by professionals from different fields, where each one, working their own day and job, is in turn in contact with other professionals with whom to network and generate business opportunities that would be difficult to generate in a classic office structure, where all the staff belong to the same company. Programmers, designers, journalists or consultants, among many others, work with a minimal infrastructure: a desk and a good Internet connection where they can connect their laptop are, in essence, more than enough for their daily work. Flexibility to the max.

If you are interested in finding out more about the implementation and future of these spaces, don't miss out on this talk by Marta Rocamora, community director of WeWork Spainabout this trend in the second edition of our Speakeasy in Barcelona.

The importance of sustainability

Moving towards a greener and more sustainable economic model is also, fortunately, one of the most notable trends in the real estate market. The main players in the real estate sector are opting for a more sustainable and energy-efficient model. This means not only reducing the energy consumed by buildings when they are operational, but also mitigating the environmental impact of their construction. Around 40% of global greenhouse gas emissions are the responsibility of buildings, so improving energy efficiency is an urgent issue in trying to combat the climate crisis.

And as the change has to start at home, here are some essential tips to get you started with the electricity self-consumption. A breath of fresh air for the planet and your wallet.

New financial solutions for thereal estate

The digitalisation of real estate and finance has led to the emergence of new financing solutions in line with new trends in the real estate market. Some of the most interesting innovations have to do with factoring and crowdfunding:

• Real estate crowdfundingCrowdfunding platforms make it possible to acquire stakes in real estate projects in exchange for small cash contributions. This allows virtually any user to access real estate investment. A distinction is made between non-accredited investors (no more than €3,000 per project and no more than €10,000 per year between all projects); and accredited investors (no limit on investment, although the projects in which they invest cannot exceed a total of €5 million).
   
• Real estate factoringFactoring is a financial solution often used by companies. It consists of obtaining financing through the collection of outstanding invoices. Now, owners of rental properties can also use this type of financing and collect the outstanding invoices.rent in advance by leveraging their rents. In addition, this type of financing also allows the landlord to access a loan despite having anegative credit history.
   
• Investment in real estate debtIt is a fairly unknown type of investment, but it sometimes offers interesting returns. Through digital platforms it is possible to acquire - or disinvest - in loans and mortgages linked to real estate assets. This type of investment product, years ago, was far from the reach of the small investor, who now with €10,000 or less can have access to this market, with assets of all types: residential, commercial, offices, etc. The return will depend on the risk and whether the loan is up to date with payments or whether, on the contrary, the debtor has defaulted.