The Spanish residential sector showed signs of a solid recovery in 2015 after eight years of collapse. Price corrections up to 40% from peak values, coupled with favourable financing conditions, are signalling the start of a new cycle, with the market becoming more institutionalised as investor interest rises. The institutional investment market has been dominated by UK and US funds, focused both on social housing and multi-family assets. Lonestar led the market recovery early in 2015, when it acquired Neinor Homes and over a hundred plots of land to develop residential on over the next four years. The increasing demand for rental property has increased the rental share of the market from 11.5% to 19.2% over the last 10 years and is predicted to continue. Despite low yields at 3-4%, further capital gains are expected in the mid-term.