Dive into the dynamic Iberian coliving market with this article from the inaugural Coliving Conference 2023. Created in partnership with Coliving Conference, it unpacks strategies to overcome affordability challenges and adapt to rising demand. Preview how coliving is evolving in Portugal and Spain — access the complete recap on Coliving Insights.
Iberia: Market Updates, Opportunities & Investments
This session aimed at uncovering market trends, investment potentials and pathways for expansion in the dynamic coliving industry in the Iberian Peninsula.
The discussions surrounding transformative strategies monumental to growth were the focus of this panel. The panellists emphasised the crucial role of diversification, sustainability, accessibility, and collaborative engagement with stakeholders in achieving scalable success tailored to the Iberian region.
What was covered in this session?
- The panel uncovered winning strategies of successful coliving brands in the lively Iberian region, blending diversification, sustainable practices, accessibility, and strategic collaboration for scalable growth.
- Attendees got a firsthand look at how Iberian coliving pioneers adapt and innovate to meet local demands, gaining a competitive edge.
- The panel also emphasised the vital role of sustainable practices, with a focus on environmental responsibility and social impact, crucial for long-term success in the dynamic Iberian market.
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Coliving Market Dynamics in Portugal and Spain
In both Portugal and Spain, the coliving market is experiencing significant growth, driven by a surge in demand, primarily from international expats, digital nomads, and remote workers. While Portugal is becoming a popular destination for these groups, Spain is also witnessing increased demand, especially post-COVID-19. However, the lack of affordable housing options for local residents, especially young people, poses a significant challenge.
Williams Johnson, Co-Founder and CEO at B-Hive Living, highlighted the unrealised potential in Portugal, where only 18% of the estimated 17,000 beds are in the pipeline or live assets. The rental market in Portugal has seen a 51% quarterly increase, making Lisbon the third most expensive city in Europe. This surge in demand has made it challenging for local residents to find affordable housing.
The Challenge of Affordability
Affordability is a central issue in the coliving market in both Portugal and Spain, driven by rising prices and the influx of international demand. In Lisbon, for instance, the average rent for a one-bedroom apartment has reached around 2,000 euros, significantly exceeding the minimum wage and making it difficult for local residents to secure affordable housing.
Williams highlighted the need to provide affordable housing not only for international travellers but also for the domestic market, particularly young people. He focused on the importance of offering coliving as a solution to the affordability challenge, underscoring the potential to make a positive impact but noting that scalability and affordability are key hurdles.
Carles Ribes Estrella from Badi discussed the changing demographics of coliving seekers, with the average age increasing to 30. This shift signifies the lack of affordable housing options for young adults in Spain, leading them to opt for shared accommodations. Seekers are increasingly seeking shorter rental durations and private bathrooms, indicating their evolving preferences.
Esteve Almirall from Node stressed the importance of creating new supply to solve the affordability challenge. He praised Madrid's innovative regulations and flexibility, which have allowed for the fast-tracking of licences and relaxed parking requirements. To address affordability, Esteve pointed out the need to create dignified, affordable housing units that offer a sense of home to residents.
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Regulations and Licensing in Coliving
The panellists delved into the regulatory landscape and licensing challenges associated with coliving in Portugal and Spain.
Carles Ribes Estrella from BadiI highlighted the need for clear regulations in the coliving industry and commended Madrid for its forward-thinking approach. Madrid has introduced a system for fast-tracking licences and has demonstrated flexibility in areas like parking requirements. However, he noted that the regulatory environment varies across Spain, with each autonomous community having its own rules, creating a fragmented landscape.
Esteve Almirall from Node discussed the regulatory differences between Madrid and Barcelona. Madrid has introduced innovative regulations, such as private entities granting licences for faster approval and flexibility in parking requirements. In contrast, Barcelona has a more restrictive regulatory framework, particularly for aparthotels.
Evolving Tenant Preferences and Demands
The panellists explored how tenant preferences and demands have evolved within the coliving market.
Carles shared insights on tenant preferences, including shorter rental durations, an increasing preference for private bathrooms, and the demand for cleaning services and linens. These preferences vary based on location and property type.
Esteve brought emphasis to the importance of creating a home-like environment for tenants and how different offerings cater to various needs. Private units with their own kitchen and bathroom are suitable for longer-term stays, while communal areas provide spaces for connection and convenience.
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The Role of Coliving in Addressing Housing Challenges
The panellists discussed how coliving can play a crucial role in addressing housing challenges in Portugal and Spain.
Williams Johnson stressed the potential of coliving to make a positive impact on housing issues but emphasised the need for affordability and scalability. The lack of affordable housing options for local residents, particularly young adults, presents a significant challenge. Williams reiterated the importance of offering coliving as a solution to the affordability challenge and urged the industry to work towards making a meaningful impact.
Carles highlighted the role of coliving in addressing the lack of affordable housing options for young adults and shared insights into BadiI's transformation from a room rental marketplace to a coliving operator.
Esteve expressed the importance of new supply in solving the affordability issue and described Node's approach to providing dignified, affordable housing options. Madrid's regulatory efforts and innovative approach to addressing the housing shortage were noted as a positive example in the coliving market.
Reflecting on the success of the first 2 editions, Coliving Conference 2025 is now in full swing. The 2-day conference is set to bring another year of industry-leading discussions, featuring expert insights, emerging trends, and innovative ideas shaping the future of shared living. Secure your spot today and be part of the conversation.