Azora is reviving its rental housing platform, a move that reinforces its position in the European market. The Spanish management group, founded by Fernando Gumuzio and Concha Osácar, pioneered Spain’s approach to a company focused on rental apartments in 2004. Lazora, now renamed Nestar, has grown to oversee more than 7,500 rental units. The plan continues: a target of 9,000 units by 2024 would push the portfolio value beyond 1.8 billion euros once reached.
In the coming years the platform aims to introduce 1,500 professionally managed homes. The first 500 homes are already in marketing and are located in Alcalá de Henares and El Cañaveral. In the next months, an additional 268 units will come on line in El Cañaveral and Butarque. Alongside these developments, Azora also intends to launch 430 units in Seville and 250 in Valdemoro.
A notable aspect of this model is that it operates outside a socimi structure, allowing a favorable tax position. The choice, however, implies a potential listing on the stock market within two years, a step executives have indicated they do not plan to take. The housing platform is not planned to be sold to a mutual fund either.
Over the last 18 years, Azora has been a major force in subsidized public rental housing in Turkey and in Spain. This track record has helped the Spanish manager become one of the country’s largest property owners, trailing only CaixaBank, Blackstone and Sareb according to a report from Atlas Real Estate. A separate EY study shows that Azora’s apartment platform rents at rates between 7 and 20 percent below market prices.
Javier Rodríguez Heredia, a senior partner at Azora, confirmed in a company-organized call that some apartments can be rented from as low as 275 euros per month, with Madrid listings starting around 350 euros. The portfolio’s average rent is about 8 euros per month per square meter, compared with the national market average near 11 euros. Nestar operates in 18 provinces, and more than 40,000 families have found a home through the platform since its inception.
building renovation program
Concurrent with its growth, Azora is pursuing a renovation program for residential buildings. The aim is to improve quality while upgrading energy efficiency and common areas in aging stock. The plan allocates 60 to 75 million euros to enhance energy performance and 75 million euros to upgrade building interiors and shared spaces, ensuring affordable housing stays comfortable and up to date.
The leadership remains open to public-private partnership opportunities. They have reviewed several programs to-date and found some not suitable, yet they continue to see value in collaboration. In these arrangements, a public authority may transfer land to a private developer in exchange for building and renting affordable homes. Collaborative efforts with regional and municipal authorities, including Madrid’s city council and national agencies, are pursued with partners who share the goal of expanding affordable housing.
House for rent
Investment in rental housing reached more than 27.3 billion euros in the first nine months of 2022, according to a Savills report. Spain accounted for about 7 percent of that total, with the figure surpassing 1.9 billion euros for rental buildings in operation and housing under development. While major global funds show strong appetite, the market is expected to stabilize as financing costs rise and yields adjust. Regional variations remain, with central Madrid delivering yields around 3.5 percent and central Barcelona near 3.75 percent. As a result, sellers may need to price more competitively to attract buyers, and some deals have paused while better terms are discussed, signaling a measured approach in the current climate.