The Spanish real estate market is on track for a strong 2022 result, with figures not seen since the last housing boom. But the current uncertain situation, with high interest rates to keep inflation in check, opens the door to new trends that are not always recognised among buyers. Real estate network Comprarcasa has put together a quick guide to help you avoid getting confused by the new terminology of the real estate market. From “build-to-rent” to “house flipping”, new home buying models are emerging.
For Comprarcasa CEO Lorena Zenklusen, the new homeownership and homebuying model is an “innovative approach to the market that could be a solution to the decline in sales numbers, since it allows real estate transactions to adapt to the changing needs of customers.”
Here's your quick guide to new real estate trends.
Timeshare
Already in vogue in the 1990s, timeshares are re-emerging as a purchase option, especially as second homes. In this housing arrangement, several people buy a property and, based on a prior agreement, the co-owners take turns using it for certain periods of time. This agreement also defines the amount that the buyers will pay. This amount is proportional to the time they spend in the property and includes access to all the services and facilities available in the property, such as furniture, swimming pool, gym and common areas.
One of the main features of timeshare ownership is that the buyer has the right to use the property, but not the right to own it, and one of the main benefits is that it is usually much cheaper.
Flexible housing
This innovative concept refers to new housing that adapts to the needs of its owners, allowing them to use and modify the spaces as needed. To this end, these homes are designed with a modular structure, making it easier to modify the spaces according to the needs of each resident. They can also be resized with modular and movable walls and furniture. They adapt to singles, couples, families and any other situation, using all available space 100% efficiently.
Home resale
This involves buying a home that needs renovation and then quickly reselling it for a profit. In other words, house flipping is buying a property, renovating it, and selling it quickly for a higher price than you bought it for. Investors who are working on this type of transaction should be aware that the main key to maximizing profits is to choose a low-priced property that needs renovation, and one where the repair budget is tight enough to ensure a profit on the subsequent sale.
Rental housing construction
As the name suggests, this investment vehicle involves constructing new buildings to rent out, thus helping people who are struggling to buy access real estate value.
Senior Housing
A new type of property designed specifically for independent and assisted elderly people. This trend has taken hold in English-speaking countries and can now be found in cities such as Valencia, Barcelona and Madrid, where older people live together in communities and receive services tailored to their needs. France and the UK are the leading countries in Europe in “housing for seniors”. However, due to its ageing population and high quality of life and services, Spain is emerging as a leader in this type of housing model.
Coliving
This type of shared living is commonly known as cohousing and is increasingly being recognized as an alternative to renting or buying a home. In cohousing, a group of people, such as families, seniors, or individuals with similar interests, decide to share a housing community in an intentional and participatory way.
The main feature of cohousing is that each member or family has a private space (a house or apartment) with all the amenities and services they need, but they also share common spaces and resources within the community. These common spaces often include a community house, where members gather for social activities, shared meals, meetings, outdoor areas, gardens, playgrounds, workshops, etc.