Chema de los Ríos, CEO and co-founder of the real estate consultancy Variant, which is celebrating its 15th anniversary, analyzes the current state of the real estate sector. In his opinion, there are no signs of a bubble or a change in the economic cycle, but rather a scenario of stability with more modest returns and more contained risks. Residential demand, especially in Madrid, remains strong, so price adjustments are not expected in the short term.
Variant was founded 15 years ago in the midst of the economic crisis, driven by a group of young professionals who sought to address the investment needs of private capital, which was then underserved by large consultancies. Over time, the firm has evolved towards institutional capital, which now represents 80% of its business and has allowed it to consolidate its position through major transactions.
Variant's activity focuses on comprehensive advisory services for real estate transactions, with the aim of solving real problems for investors, whether related to investment, divestment, space, or financial structure. The company emphasizes its focus on service and finding tailored solutions, even for complex assets.
Currently, the firm has six partners—longtime friends—and a team of 20. In the past 15 years, it has advised on more than 250 transactions, analyzed over 4,500 properties, and transacted nearly €2.5 billion. Among its most significant deals are advisory services for El Corte Inglés and the joint venture between EQT Exeter and Grupo Moraval in student residences.
De los Ríos underscores the contrast between the uncertainty of 2012 and the current stability. In his opinion, capital seeks predictable markets, and Spain is now perceived as a country where investment can be made with greater security, although regulatory challenges remain.
Regarding its current focus, Variant is committed to residential properties—especially in Madrid—the conversion of buildings into housing, offices, hotels, student residences, and assets related to health and life sciences. Data centers are not yet a direct focus, although he anticipates that small urban data centers will gain prominence in the coming years.
Regarding traditional assets, he highlights the strong demand for housing, the renewed interest in offices, and a consolidation process in the hotel sector following the COVID-19 pandemic. According to De los Ríos, the sale of residential portfolios by large funds reflects the end of investment periods, not a market downturn.
Regarding housing prices, he rules out a bubble, as the excessive credit of the past is no longer present. He acknowledges the affordability problem due to the gap between wages and prices, but insists that the market is heading towards stabilization, not a decline, as demand continues to outpace supply.
Student residences still have potential, although they require more precise selection of locations and models. They offer higher returns than traditional rentals, but also involve greater risk, which determines the investor profile. Variant recently opened an office in Miami to channel international capital into Spain and diversify risk, with no immediate plans for further openings. Looking ahead, the company is focused on consolidating its growth, strengthening its internal culture, and maintaining a model based on stability and customer service.