M&G has completed an investment on behalf of the M&G European Property Fund, comprising a residential development in Barcelona and a Build-to-Rent (BTR) project in Madrid.
Persistent supply shortages, demographic shifts, and ongoing urbanization continue to support demand for rental housing across Europe, particularly in Southern Europe, where migration and a growing young population further reinforce these trends. In Spain, the sustained rise in rental rates creates attractive conditions for long-term income generation and capital value appreciation.
M&G is committed to developing an affordable BTR programme in Valdebebas, Madrid, one of the city’s most sought-after residential areas. The project benefits from proximity to major urban infrastructure, including the Ciudad de la Justicia, the expansion of the IFEMA conference centre, and the Enfermera Isabel Zendal Hospital, as well as excellent connectivity to key highways, the airport, and the future extension of Metro Line 11. Upon completion in December 2026, rents will be structured to remain significantly below prevailing market levels to address the city’s urgent housing needs.
The Fund has also acquired a substantial residential development in Barcelona, one of Europe’s top 10 student cities. The project will provide units for students, tourists, and professionals seeking short- or medium-term accommodation. Its location near leading business schools and the city’s main university campus makes it ideal for professionals on temporary assignments. The building, scheduled for delivery in Q1 2026, will feature shared amenities designed to support both leisure and work-related activities.
Both assets meet high ESG standards, with the Barcelona development achieving BREEAM “Excellent” and WELL Platinum certification, while the Madrid project is rated BREEAM “Very Good.”
