SIMA 2026 once again positioned Madrid as one of the leading meeting points for the residential and living sectors, bringing together developers, investors, financial institutions, consultancies, technology companies and other professionals from across the real estate market.
Jaume Pujals, Real Estate Manager, and Sergio Barea, Sales Director at balize, attended the event to gain first-hand insight into market developments, strengthen relationships with key industry stakeholders and analyse the trends that may influence investment decisions in the coming years.
The SIMA 2026 conference programme addressed topics including affordable housing, the role of private capital, international investment in the living sector, different residential asset classes and the application of technology and artificial intelligence across the real estate industry.
1. Increasing housing supply remains the greatest challenge
The need to increase housing supply continues to occupy a central position in the real estate debate. Household formation and existing demand in major cities are not always matched by sufficient residential development.
This situation requires the industry to consider issues such as land availability, planning timescales, construction costs, financing and collaboration between public authorities and the private sector.
The challenge is not simply to build more homes. It is also necessary to develop viable projects aligned with actual demand, capable of attracting capital and responding to the specific needs of each market. Location, product type, pricing and the profile of the target buyer or end user remain decisive in determining whether a development is viable from both a real estate and financial perspective.
2. Private capital plays an important role in residential development
The mobilisation of private and institutional capital was another prominent topic at SIMA, particularly in relation to affordable housing and the development of new residential projects.
Developers, funds, financial institutions, insurance companies, family offices and private investors can participate at different stages of the real estate cycle: from land acquisition and development financing to the refurbishment or repositioning of existing assets.
However, the availability of capital does not automatically make a transaction a sound investment. Each project should have a clear and understandable structure, an appropriate balance between risk and return and a defined strategy from acquisition through to exit.
This environment requires greater rigour when assessing real estate investment opportunities, particularly in relation to the entry price, costs, timescales, financing and the project's genuine capacity to create value.
3. The living sector is becoming broader and more specialised
The residential market can no longer be analysed as a single category. Housing for sale, residential rental, Build to Rent, student accommodation, coliving, senior living, flexible accommodation, luxury residential property and branded residences all respond to different demand profiles and operating models. Each asset class requires an assessment of specific factors such as the user profile, length of stay, regulatory framework, associated services, management costs and the depth of demand in each location.
For example, Build to Rent involves developing a residential scheme conceived from the outset to remain in the rental market and operate under unified management. Its structure and capital requirements differ from those of a development intended for sale or the purchase of an individual property to rent out.
The increasing specialisation of the living sector expands the range of investment opportunities, but it also makes it more important to understand each model correctly. The overall growth of an asset class does not mean that every asset, city or project within it is equally attractive.
For investors, it is essential to distinguish between the appeal of a market trend and the specific viability of an individual transaction.
4. Financing, regulation and returns must be analysed together
The viability of a real estate project does not depend solely on the acquisition price or the expected sale value. The financing structure, level of leverage, financing costs, taxation and regulatory framework can materially affect the final outcome.
In a market where execution costs and timescales may vary, it is necessary to work with different scenarios and assess how potential deviations could affect the projected return.
It is also particularly important to define the exit strategy from the outset. Identifying an asset with potential is not enough: investors must determine where the value creation will come from, how much capital will be required, how long it will remain committed and who may acquire the asset once the project has been completed.
This approach is especially relevant to value-add real estate investments, where the outcome depends on the ability to transform, reposition or improve the asset and execute each stage of the project effectively. Expected returns should always be assessed in relation to the risks assumed and the transaction's actual capacity to absorb potential deviations.
5. Artificial intelligence is beginning to transform the real estate cycle
Technology and artificial intelligence applied to real estate played a prominent role at SIMA 2026. Their use already extends across different stages of the real estate cycle: opportunity sourcing, data analysis, asset valuation, due diligence, scenario modelling, marketing and customer relations.
These tools can process large volumes of information, identify patterns and streamline tasks that have traditionally required significant manual input. They can also support comparisons between markets, price analysis and the identification of changes in demand.
Nevertheless, technology does not replace knowledge of the asset, operational experience or professional judgement. Data must be interpreted within the appropriate context, and every opportunity still requires financial, technical, commercial and legal review.
Artificial intelligence can improve efficiency and support decision-making, but the final analysis depends on the quality of the information and the team's ability to understand the risks associated with each transaction.
The balize perspective after SIMA
For balize, the main conclusion from SIMA 2026 is that value does not lie in following every trend, but in identifying which trends can be transformed into genuine real estate opportunities.
A more sophisticated market requires deeper analysis, discipline regarding the entry price and a comprehensive view of each transaction. It is not enough to identify an attractive asset or anticipate a potential increase in value. It is necessary to understand where value creation will come from, what investment will be required, which risks may arise during execution and how the exit will be completed.
Our work consists precisely of transforming market signals into tangible projects that have been carefully selected, analysed and structured for our private investor club. Attending events such as SIMA enables us to compare our perspective with that of other professionals, strengthen strategic relationships and maintain direct insight into the evolution of the sector.
At balize, we will continue working to provide our private investor club with access to opportunities supported by a clear strategy, identifiable value-creation potential and an exit plan defined from the outset.
We remain committed to moving forward.
