Residential real estate activity surpassed €3 billion in 2022. In this context, Madrid and Barcelona have emerged as the main hubs for investment in the build-to-rent segment. This is a particularly noteworthy development in an economic environment marked by slowing growth and rising interest rates, which are driving investors to explore new opportunities within the sector.
The importance of the tourism sector in Madrid
The tourism-related real estate sector plays a crucial role in Madrid’s economy. Not only due to the city’s rich cultural life, but also because it has become a magnet for international talent, leading to an exponential boom in real estate assets over recent years. Investors and developers have recognized the market potential in acquiring properties for conversion into short- and medium-stay accommodations.
However, this rapid growth has also raised challenges and concerns, particularly around sustainability. With the significant expansion of the build-to-rent model, questions have been raised about the environmental impact and the preservation of the city’s cultural heritage. As a result, efforts have been made to ensure that the growth of build-to-rent remains compatible with environmental protection and the architectural identity of the capital.
Build-to-rent adds value
Build-to-rent is a response to the growing demand for medium- and long-term rental housing. It is a real estate development model where assets are designed from the outset with the latest technological and sustainable innovations. These properties are fully equipped, offer a range of services and amenities, and prioritize energy efficiency.
On the technology front, smart homes are equipped with IoT (Internet of Things) solutions. These technologies allow residents to control and automate various aspects of their home—such as lighting, climate control, security systems, and appliances—via mobile devices. This enhances both comfort and energy efficiency, while also providing a more personalized living experience.
In terms of sustainability, energy efficiency is a top priority. From the installation of renewable energy systems like solar panels, to energy management systems that optimize consumption and reduce long-term operating costs. In fact, energy efficiency has become a key market differentiator, achieved through the use of sustainable materials and advanced construction techniques to improve thermal insulation and reduce energy use. Certifications such as LEED or BREEAM have become standard practice to ensure buildings meet the highest international sustainability standards.
An extension of this energy efficiency is the promotion of sustainable mobility, including infrastructure for electric vehicle charging, bike parking, and proximity to public transport systems. These features promote a healthier, more sustainable lifestyle, reduce dependence on traditional cars, and help lower carbon emissions.
The General Zabala 19 apartments
In Madrid, we offer General Zabala 19, a residential build-to-rent asset designed so that tenants can enjoy the city from day one. The building features welcoming, well-designed spaces that integrate IoT technology and cutting-edge design to deliver the best possible living experience. This focus on technology and sustainability not only improves tenants’ quality of life, but also contributes to building more resilient communities, placing well-being at the center and aligning with the Sustainable Development Goals (SDGs). It’s an impact that goes beyond the residential sector, positioning Madrid as an international hub for business, culture, and quality living.
