CBRE and Suiters have launched a partnership to promote the development of flexible accommodation formulas in Madrid. CBRE is advising Suiters on buy side to expand its business in the capital.
The first building under this collaboration framework is located in the Atocha-Pacífico area. The 2,117 sqm asset will become one of the largest urban flex living oriented buildings in the centre of the capital.
Suiters is a company promoted by Marjal Grupo in 2019 that invests in the design and development of flexible accommodation formulas in urban environments, which already has a project in operation in Alicante and others underway in different parts of Spain. The company is firmly committed to the creation of premium quality accommodation experiences and, under the Suiters brand, wants to continue to expand its presence, more specifically in a city as relevant and with so much growth potential for the Flex segment as Madrid.
Javier Caro, Head of Flex Living CBRE Spain: "This collaboration is great news for the Flex Living segment, demonstrating the interest that this sub-sector is generating in Spain and specifically in Madrid. We are confident that Suiters will become a benchmark for flexible accommodation in the capital".
According to Javier Fur, CEO of Suiters: "There are many people who want to live their own way without sacrificing comfort, quality or their commitment to sustainability or the environment. We want to continue to provide flexible spaces and experiences so that they can make this possible. Bringing these new residential formulas to Madrid is very important for us and the harmony with CBRE has been definitive in reaching this collaboration agreement".
Incipient sub-sector, but with great growth potential in Spain
The Flex Living segment is still in its infancy and in the process of professionalisation in Spain, but has a high growth potential, supported by an ever-increasing demand for a flexible and temporary housing product, with services included and professionally managed. In 2021, it represented 7% of total revenues in Living (around €200m), and this figure has multiplied by 3.5 times in 2022, to €666m (15% of total investment in Living), according to CBRE data. In the first quarter of 2023, investment in Flex Living reached €154 million (13% of total Living), with Corporate Living accounting for 81% of the total volume and Coliving for the remaining 19%.
90% of the beds currently operating in Spain are located in Madrid and Barcelona, however there is a strong growth of assets under development in secondary cities such as Bilbao, San Sebastian, Valencia, Malaga, Alicante and Seville, among others. Of the approximately 3,000 beds in 2022, 65% were located in Madrid and 35% in Barcelona. The expected pipeline is more than 8,500 beds until 2025 (80% Madrid; 20% Barcelona).
Javier Kindelan, Vice President and Head of Living at CBRE Spain: "Flex Living, a sub-sector recently launched by CBRE under the Living area, seeks to respond to a constantly changing way of life in which the needs of users must be placed at the centre of the product. Projects such as Grupo Marjal and Suiters will provide an important offer that until now has been practically non-existent in the capital in the face of an ever-growing demand. In the coming years, we will see the consolidation of this segment as a major housing alternative in our country".
