Madrid’s off-market property sector is increasingly drawing investor interest as a niche opportunity within broader European real estate. Israeli-founded firm Nadlan B’Jeans, led by CEO Lior Levy, has centred its business model on sourcing and acquiring distressed properties in Madrid and Málaga that rarely appear in public listings and can be priced as much as 60% below estimated market value.
The firm has completed more than 1,800 transactions in Spain by targeting assets entangled in legal complexities that traditional buyers and institutions prefer to avoid. These include bank repossessions, inheritance disputes and occupancy issues, all of which contribute to substantial discounts. Levy describes the strategy as offering “real estate with high yield” by focusing on properties outside conventional market channels.
One acquisition method the company uses is a legally regulated usufruct or “viager” sale, in which investors purchase full ownership while the seller, often an elderly resident, retains the right to live in the property for life. This arrangement provides sellers with financial relief while allowing investors to secure assets at roughly half of typical market prices without carrying costs for utilities or maintenance during occupancy.
The firm also invests in properties affected by prolonged occupancy issues, negotiating directly with occupants to secure vacant possession, often achieving either departure or agreed settlements that enable full investor control within about a year. Nadlan B’Jeans has developed proprietary AI tools to scan Spain’s fragmented property landscape, analysing decades of government records to identify opportunities that meet its criteria.
Madrid’s demographic trends and housing shortage underpin the firm’s focus. Levy highlights significant net migration into the city and a deficit of housing units, which he believes sustains demand for off-market assets despite legal and operational complexities. However, how scalable this specialised acquisition approach will be over the long term, given legal hurdles and reliance on distressed opportunities, remains an open question for investors weighing niche real estate strategies.
