Investment in Premium Shared Apartments in Spain: Profitability, Trends, and Strategic Recommendations

Investment in premium shared apartments in Spain has seen spectacular growth in 2024, further establishing itself as a profitable and attractive formula in the real estate business. This model, which brings together high-quality room rentals and complementary services, responds to the increasing demand from young professionals, international students, and digital nomads for flexible and well-located accommodation.ubicado.

Profitability of the Business Model

A research by Fotocasa reveals that the gross profitability of renting a property by rooms is 9.5%, far higher than the 6.2% obtained by traditional rentals. This 3.3% difference reflects the lucrative nature of this model. In some locations, like Navarra, the rental yield of shared housing is 12.2%, while that of traditional rentals stands at 6.5%. 

Benefits of Investing in Premium Shared Apartments

• Higher Return on Investment – Room letting ensures higher overall revenue from the property, improving profitability.

• Sustained Demand – Increased workforce and student mobility ensures sustained demand for decent quality rooms in city centers.

• Flexible Contracts – Rental agreements for rooms offer greater flexibility to adapt to market conditions and tenants' needs.

Challenges of the Model

• Operational Management – Managing multiple leases and catering to different tenants' needs entails more intensive management.

• Regulatory and Legal Compliance – Staying up to date with local tenancy legislation is required to avoid potential fines or legal issues.

Key Cities and Sector Trends

Madrid and Barcelona are the leaders in the luxury shared housing market. In Madrid, some theme rooms in city-center properties are rented for up to €2,500 a month, targeting wealthy tourists and high-income professionals on short-term visits. 

Moreover, coliving has gained popularity, blending privacy and communal services. Between 2022 and 2024, the sector expanded from 2,000 to 10,000 beds, 6,000 of which are in Madrid. 

Popular Platforms and Success Stories

• Real estate platforms like Idealista have recorded a 20% increase in the supply of shared rooms in the third quarter of 2024, with a demand increase of 8% for rooms. 

• Successful investors have transformed commercial spaces into shared housing units, profiting from high demand and a shortage of new residential developments. 

Projection for 2025 and Actionable Recommendations

The demand for luxury shared apartments will continue in 2025 due to international mobility and evolving work habits. For those looking to invest in this market, the following strategies can help maximize returns:

• Strategic Location – Invest in city centers or well-connected areas that attract professionals and students.

• Quality and Services – Offer fully furnished rooms with complementary services such as cleaning, high-speed internet, and appealing common areas.

• Legal Compliance – Stay updated with local laws to ensure full compliance and avoid regulatory issues.

Investment in high-end shared apartments is proving to be a solid and profitable option in the Spanish real estate market, provided it is approached with professionalism and effective management. As demand continues to grow, those who strategically position themselves in this sector stand to gain significant returns.