As Spain’s housing crisis tightens its grip, a new type of property is suddenly gaining ground, and for some investors, it’s proving highly profitable.
With rental demand soaring in major cities, competition for flats has never been fiercer.
Now, so-called ‘micro-flats’ – compact homes designed for single occupants – are emerging as a practical response to a market under pressure.
One of the investors leading this trend is Quique Escriva, who currently owns and rents out 20 of these small properties.
A gap in the market
‘These aren’t room rentals, and they’re not large apartments either,’ Escriva said in a recent YouTube video. ‘We’re filling that gap in between.”
Typically ranging between 25 and 40 square metres, the flats are designed to maximise every inch of space.
Most include a kitchen and bathroom, while some developments also offer extras like shared terraces or storage rooms.
Rents are relatively affordable compared to standard flats. A 25-square-metre unit, for example, can go for around €400 to €450 a month, making them attractive for tenants priced out of larger properties.
For landlords, however, the appeal lies in returns. According to Escriva, mini-flats can generate higher yields than traditional rentals.
Big returns from small spaces
His next project involves transforming a single property into nine mini-apartments, in an investment of around €500,000.
‘We expect returns of around 12% to 14%,’ he says. ‘In three or four months, everything should be ready.’
The development will also include individual storage units to boost value and rental appeal.
Once fully let, Escriva estimates the building could bring in between €5,000 and €6,000 per month.
He expects to recover the initial investment within seven to eight years, after which the income becomes pure profit.
A growing trend
As affordability continues to dominate Spain’s housing debate, mini-flats are increasingly seen as both a solution for tenants and an opportunity for investors.
‘It’s a product designed for investment,’ Escriva says. ‘A way to build long-term assets.’
With demand showing no signs of slowing, these small spaces could play a big role in the future of Spain’s rental market.
