A fast-growing German property firm has found itself at the centre of Andalucia’s housing row – as politicians warn large-scale ownership of residential units is fuelling a deepening affordability crisis.

The company in the spotlight is Limehome, a tech-driven operator of short- and mid-stay apartments that has quietly built a vast portfolio across Europe in just a few years.

While critics in southern Spain accuse large landlords of hoarding homes, Limehome is simultaneously accelerating its expansion, backed by tens of millions in fresh investment, including a €75million injection in December last year.

So what exactly is Limehome and why is it suddenly under scrutiny?

A digital-first property empire

Founded in 2018, Limehome operates a hybrid model that blends residential apartments with hotel-style services, often described as a ‘fully digital hospitality platform’.

Guests typically book online, check in via smartphone and stay in design-led apartments without traditional reception staff.

Behind the scenes, the company partners with property owners and investors, taking over entire buildings or units and converting them into centrally managed, short- and medium-term accommodation.

By the end of 2025, Limehome said it had more than 12,500 units either live or under contract across 154 cities in 13 countries, including major hubs such as Paris, London, Barcelona, Lisbon, Athens and Berlin.

Expansion accelerating across Europe

Growth has been particularly aggressive in the past year.

In 2025 alone, the company signed more than 3,500 additional units, with over 1,000 of those located in the Iberian peninsula, underlining its growing footprint in Spain and Portugal.

Now, expansion is set to intensify. In December, Limehome secured a €75 million strategic investment from Cheyne Capital through its credit arm, providing both growth financing and equity backing.

The funding will help bring more than 1,000 new units online in the first half of 2026 alone, with further expansion planned in key European cities.

The firm is also targeting distressed hotel assets by converting them into its standardised apartment model, as well as rolling out updated design concepts across new developments.

‘2025 marked a year of strong operational performance and strategic expansion,’ said Josef Vollmayr, co-founder and co-CEO of Limehome.

‘Our model continues to prove resilient and efficient, delivering above-market performance despite a challenging hospitality environment.’

High margins and investor appeal

The company’s rapid growth is being driven by scale and profitability.

Limehome reports gross operating profits above 60%, with occupancy rates and revenue per available room outperforming market benchmarks in its core locations.

Investors have been drawn to its centralised, tech-led operating system, which reduces staffing costs while maximising returns.

Why it’s controversial in Andalucia

But that same model is now attracting political backlash in Spain.

Critics argue that large-scale operators – whether investment funds, banks or corporate landlords – are removing housing stock from the long-term market and converting it into higher-yield short-stay accommodation.

That, they say, is pushing up rents and making it increasingly difficult for locals to find affordable homes.

In Andalucia, where housing pressures have intensified in cities like Sevilla and Malaga, the debate has become especially heated, with calls for stricter regulation and even the forced redistribution of properties owned by large landlords.

While Limehome does not typically ‘own’ every property it operates – often working through leases and partnerships – its growing footprint places it firmly within that wider debate about who controls housing in Spain.

Read more Andalucia news at the Spanish Eye.