Wall Street Mega-Landlords Piled into Spain’s Rental Property Boom, and Now it Hits a Wall?

The reoccurring bubble syndrome

Rigged Game

Blackstone Group, Cerberus Capital and others face a little problem.

Demand for rental housing in Spain may have hit a wall, so to speak, while supply remains more or less unchanged, according to a new study by the real estate agency Fotocasa: Last year, 14% of Spanish adults had rented or were looking to rent a new property; this year, this figure has slumped to 9%.

There doesn’t appear to have been a concurrent shift in demand to the ownership market. Demand for buying properties is more or less where it was last year, says the study. “Young workers are opting to stay at their parents’ home or to live in the flat belonging to their partners,” said Beatriz Toribio, Fotocasa’s director of research, during the report’s presentation.

The main reason is the unprecedented surge of rents in recent years. In 2017, rents rose by an average of 9%, although in…

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