BTR Assets and Residential Rental - Madrid and Spain
Madrid leads the BTR in Spain with more than 5,800 homes. Design is the variable that determines rent.
BTR in Spain is growing at 27% per annum and 37,000 homes are projected by 2026. In a market where institutional funds compete for the same tenants, a well-designed asset justifies higher rents, reduces turnover and maintains its value over the long term. We design residential rental portfolios with that in mind: asset performance first, aesthetics second.
The real problem
A BTR asset without a differentiated design competes solely on price. And price always has a limit.
The BTR tenant chooses based on the perceived quality of the space. A well-designed asset justifies a 15-20% higher than average rent, retains tenants longer and maintains its asset value over the long term.
Income below potential
Without design differentiation, the asset cannot sustain above-average rent. Investment in design has a direct and measurable return in the rent that the market agrees to pay.
High tenant turnover
Every time a tenant does not renew, the asset loses 1 to 3 months of rent in vacancy and capture costs. Design that generates real satisfaction reduces that turnover consistently.
Common areas that do not add value
At BTR, common areas are a selling point. A well-designed coworking room, gym or terrace justify the rent and reduce vacancy. Poorly executed, they are a cost with no return.
Materials that do not withstand rotation
A BTR has to withstand tenant turnover for 15-20 years. A design that does not consider durability and maintenance generates recurring costs that erode the profitability of the asset.
Process
How we work
1.
The Appointment
We evaluate the target tenant profile, target rent, direct competition in the area and technical limitations of the asset. The design is calibrated to justify the target rent.
2.
The Design
For multi-asset portfolios, we develop a replicable design system with consistency between buildings. Asset identity, not unitary decoration. Full 3D renderings before deciding.
3.
The Production
Executive plans, selection of materials with durability and maintenance cost criteria, FF&E list with alternatives by price range. Closed budget before starting.
4.
The Installation
Construction management and supervision of finishes. Delivery with the asset ready to photograph and publish. The first tenant enters a space that already justifies the rent requested.
27%
annual growth of BTR in Spain - from 500 units in 2019 to more than 11,000 in 2024.
5.859
BTR homes in Madrid, 46% of the national total - capital city leads the market by a wide margin
52%
higher profitability of BTR versus traditional rentals, with lower risk of default and vacancies
37.000
BTR homes planned in Spain by 2026, with expansion to Malaga and Valencia
Let's talk
Do you have a BTR asset or rental portfolio under development or renovation?
Tell us the number of units, location and target rent. We respond within 24 hours with a direct valuation.
- No commitment
- Free initial consultation
- We respond within 24 hours