The latest report from the National Institute of Statistics (INE) on home tenure by age, published in 2017, shows that only 26.5% of young people aged 16 to 29 owned property. Fifty-two point two percent were living in rented apartments and 21.4% did not pay rent.
“Eight out of ten people in the millennial generation — born in the 1980s and 1990s — want to own a home. Yet about 60% say they have less than 20,000 euros to put toward a purchase, making traditional mortgages with a typical 20% down payment hard to secure,” explains Guillermo Estévez, managing director of Gradual Homes, the Gradual group’s lease-to-buy division.
José Manuel Cortes and Sofia Iturbe, co-founders of Libeen, another company focused on this leasing model, add: “If a house required only a 5% down payment instead of 20%, banks would be more willing to approve more customers.”
How much is the lease with option to buy?
In a standard lease-to-own arrangement, the tenant typically provides 5% of the purchase price at signing. They then pay monthly rent for a period of at least three years, with a portion of that payment accumulating toward the principal, typically reaching 20% of the property value. When that threshold is achieved, the borrower can apply for a mortgage loan.
“Lease with the option to buy makes housing access more flexible. Tenants can inhabit a home they like while reserving part of their rent for eventual purchase, often with far lower upfront mortgage costs,” says a Gradual Homes spokesperson.
This model has been used in Spain for years but has not always been successful. “It is not standardized because owners want immediate payment. That is why it remains more common among specialized firms,” explain Cortes and Iturbe. The model is much more established in other countries, such as the United States, where companies like Home Partners — acquired by Blackstone in 2021 — have facilitated access to housing.
How profitable is this business for investors?
From left to right: Guillermo Estévez, CEO of Gradual Homes, and José Manuel Cortes and Sofia Iturbe, co-founders of Libeen
Both companies confirm that their investor profiles lean toward stability—an even safer approach in a fragmented residential market with properties spread across different locations rather than a single building. Annual returns for these arrangements typically range from 3% to 6%, with a fixed income throughout the contract. “It is a very safe investment that also serves a social purpose,” say Libeen’s founders.
The managing director of Gradual believes the approach aligns well with both private and corporate investment strategies because of the predictable returns. Libeen’s founders also see strong market demand but acknowledge concerns about potential shifts from new housing legislation that could impact rental dynamics.
José Manuel Torres notes that investing in a closed, transparent model with a clear start, end, and predefined conditions provides greater certainty. “The tenant owns the home, so it is in everyone’s interest to protect and maintain it. Maintenance costs drop, turnover and vacancy risk fall, and the transaction ends with the tenant purchasing the property. It truly fits the tenant’s needs,” he adds. “Overall, this is a transparent and compelling investment model for all parties.”
Gradual, with support from Arrienda, Colomer family Pryconsa developers, and Grupo Caser, confirms it has already invested 5 million euros to acquire homes and has 20 million euros committed to closing 90–100 new transactions. Libeen, backed financially by Cusp Capital, completed a 2.5 million euro investment round last year and reports 10 million euros in planned purchases. A waiting list of 100 potential buyers and more than 37,000 registered platform users indicate strong interest. If all sign, the potential investment could reach 8 billion euros.
Social component
Experts highlight the social aspect of offering lease-to-own options. “The goal is to help young people access housing as the mortgage market is often out of reach,” says Sofia Iturbe. “We propose an investment with a social element to help more people become homeowners and address a housing challenge in Spain.”