Introduction to Real Estate Co-Ownership in Spain
A new model of real estate investment is transforming the way people access luxury properties in Europe. This model, known as real estate co-ownership, is gaining traction in countries like Spain, France, and Italy. It allows investors to purchase fractions of luxury properties with guaranteed usage rights and access to future appreciation.
Latin American Investment in Spanish Real Estate
From 2019 to 2024, Latin American investment in the Spanish real estate market reached €1.7 billion, with México accounting for nearly 75% of this investment. Madrid is the primary destination, with Mexican investment growing from €22 million in 2019 to over €523 million in 2024.
Why Mexico Leads Latin American Investment
According to Carlos Gómez, CEO of VIVLA, Mexico is the leading investor in Madrid’s real estate market, accounting for 50% of investments. Colombia and Venezuela follow closely behind.
The Rise of Real Estate Co-Ownership
In a volatile financial environment, investors seek safer, more flexible, and cost-effective ways to diversify their assets. Real estate co-ownership is not a fleeting trend but a consolidated model in Europe, as per the European Housing Trend Report 2023 by RE/MAX Europa.
Mexican Investors Seeking International Properties
According to AMPI, 35% of high-net-worth Mexican investors seek properties abroad, primarily in the United States and Europe.
The New Spanish Co-Ownership Model
“La copropiedad, la nueva fórmula con la que los ricos están arrasando las costas españolas,” an article from La Sexta, explains that this new model amends the Spanish co-ownership system from the 1980s, which granted usage rights for a property part of the year. Now, investors purchase fractions of the property itself.
- Division of Properties: Each house is divided into eight fractions. Investors can choose to buy one to four fractions, ensuring no single entity owns more than 50%.
- Usage Rights: This structure allows each owner to enjoy several weeks of usage. However, annual usage must be predicted at the start.
Benefits of Real Estate Co-Ownership in Spain
This model offers Mexican investors access to exclusive properties in key destinations like Madrid with lower initial investment, shared maintenance costs, and professional property management under a legally secure scheme with notarized deeds and comprehensive management.
