The real estate investment market in Spain, especially with regard to the Flexible Accommodationis experiencing a time of contrasts. While 2024 saw a notable increase in the number of Socimis entering the stock market, with 31 new listings, the outlook for 2025 is uncertain, especially for those Socimis with investments in the residential sector.
This concern arises from the possibility of legislative changes that could affect the tax advantages of these entities if the government follows through with the warnings issued at the beginning of the year. Although large Socimis without residential assets do not appear to be the main focus, the threat hangs over those that manage rental properties. Data from the Abbaco Markets report reveal that a 30% of Socimis in Spain focus exclusively on Residential Flexible AccommodationThe number of companies listed on the stock exchange in 2024 exceeded that of other categories such as retail and offices. In fact, of the 31 Socimis that started trading in 2024, nine had residential rental as their main activity.
Legal certainty is a crucial factor for Socimis, given their nature as listed companies that require complex and costly IPO processes. The current uncertainty is slowing down the creation of new Socimis and generating concern among existing ones that must comply with the requirement to be listed within two years of incorporation. Experts warn that less favourable taxation for Socimis in the residential sector could place Spain in a situation in which it would be in a position of being in a disadvantaged position compared to other European countries with figures similar to REITs. This situation could influence both domestic and international investors when deciding where to allocate their capital.
Despite the uncertainty, the Spanish Socimis market is showing dynamism. A growing number of smaller Socimis has become listed in recent years, which is diversifying the rental market and broadening the profile of landlords, while bringing greater transparency and professionalisation. This trend is explained by the increased accessibility resulting from the competition between markets, with a reduced requirements and costs associated with admission to and maintenance on the stock markets.
In 2024 there was a boom in stock market debuts, with 31 Socimismainly in markets with lower free float requirements, such as BME Scaleup and Portfolio Stock Exchange. Although the total capitalisation of the 144 listed Socimis at the end of last year was €25.56 billion, it is still below that of REITs in other countries. However, the incorporation of Socimis with smaller and smaller market capitalisations, even below EUR 20 million in the 55% of 2024 incorporations, reflects a greater democratisation of market access.
Recent examples such as Almond Core Centre, specialising in the purchase, refurbishment and rental of granular housing, or Student Property Income, focused on student residences, both launched in 2025, demonstrate that the interest in the Flexible Accommodation through the figure of the Socimis is still present. However, the evolution of these and future projects will largely depend on the clarity and stability of the regulatory framework in the near future. The current legislative uncertainty is a brake on the growth of the Flexible Accommodation through this investment vehicle, pending definitions that will allow investors to take decisions with greater legal certainty.
