The massive growth of Coliving facilities in the global and Spanish markets

Coliving has evolved from an emerging trend to a firmly established housing solution in the global real estate market. This shared-living model is gaining popularity not only in cities like New York or Berlin but also in Spain, where the demand for affordable and flexible housing options continues to rise. In 2024, coliving has reached new heights, driven by factors such as the rise of remote work, the housing affordability crisis, and a growing need for social connection. Let’s dive deeper into how coliving has expanded and its impact on the Spanish market.

What is coliving?

Coliving is a shared housing model where tenants have private spaces (like bedrooms) but share communal areas such as kitchens, living rooms, and in many cases, coworking spaces. This concept not only offers an economic solution to housing shortages but also focuses on fostering communities among residents, making it an attractive option for students, remote workers, and professionals seeking a more flexible lifestyle.

Factors driving the global growth of coliving

Coliving has seen remarkable growth worldwide, and the factors behind this expansion are also evident in Spain:

1. Housing affordability crisis: Housing prices in Spain have skyrocketed over the past few decades. In major cities like Madrid and Barcelona, rent prices have reached prohibitive levels for many young professionals. According to a report by ULI and JLL, the lack of affordable housing is one of the primary drivers of coliving, as it allows residents to share costs.
2. Growth in single-person households: In Europe, and particularly in Spain, the number of single-person households is rising. According to data from the INE, 26% of households in Spain are made up of just one person. Coliving offers a solution for this demographic by providing the privacy of an individual room while fostering community through shared spaces.
3. Remote and digital work: The COVID-19 pandemic accelerated the adoption of remote work, and now, many people seek the flexibility to live and work from anywhere. By 2024, approximately 16% of global companies have adopted fully remote work. This shift has led to a growing demand for coliving spaces, particularly among digital nomads, who can easily move between cities and countries.
4. Loneliness and well-being: Coliving addresses not only economic issues but also social ones. In a world where loneliness is becoming increasingly common, especially among young people, coliving communities offer opportunities for daily social interaction, helping to alleviate feelings of isolation.

The coliving landscape in Spain

Spain has emerged as one of the fastest adopters of coliving in Europe, driven in part by rising housing costs in major cities and the appeal of Spain’s cities to digital nomads and expatriates. Barcelona and Madrid have seen rapid growth in coliving facilities, driven by the demand for flexible housing solutions and the increasing interest in remote work.

Barcelona has become a hub for coliving. Its combination of a favorable climate, vibrant culture, and relatively low cost of living compared to other major European cities makes it an attractive destination for expatriates and digital nomads alike. Companies like The Student Hotel have been leading the way, offering coliving spaces that combine coworking areas, housing, and community events.

In Madrid, the story is similar. The Spanish capital has seen a rise in demand for coliving, especially over the past few years, as more young professionals move to the city seeking new job opportunities and a more accessible community-oriented lifestyle. According to the Co-Liv Report 2024, coliving projects in Madrid are increasingly incorporating services like wellness programs, from fitness classes to meditation sessions, reflecting the growing trend toward holistic living.

Investment in coliving

As interest in coliving grows, so does investment in this type of housing. In Europe, investment in coliving reached €1.2 billion between 2020 and mid-2022, with Spain emerging as one of the key markets for new developments.

This level of investment is driving the creation of new coliving projects in cities like Valencia and Málaga, where demand for affordable housing is on the rise among international students and workers.

Real estate companies are recognizing the potential of coliving to offer high occupancy rates and stable revenue streams. Instead of relying on traditional rental models, investors are seeing coliving as an opportunity to offer a more attractive product that not only meets housing needs but also fosters a vibrant social and community life.

Challenges and the future of coliving

Despite its rapid growth, coliving faces several challenges. Zoning regulations and building codes are often not designed to accommodate this new form of housing, which can limit development in some cities. Additionally, there is a misconception that coliving is only for a very specific demographic, such as young professionals, when in reality, the model has the potential to attract a much broader range of people, including seniors and families.

Looking forward, coliving appears to be uniquely positioned for continued growth. As urbanization continues and the demand for affordable housing remains high, we are likely to see an increase in the number of coliving facilities in Spain. Additionally, with a growing focus on sustainability, coliving has the potential to reduce its carbon footprint through shared resources and the reuse of existing buildings.

Conclusion

Coliving is here to stay, and its growth in Spain is a clear sign that this housing model addresses key economic and social needs. With its ability to provide affordable solutions, foster a sense of community, and adapt to modern lifestyles, coliving is transforming the way we live, work, and connect in the 21st century.