Spain’s Student Housing Market: A Data-Driven Investment Opportunity

Spain hosts approximately 1.76 million university students, with a significant portion relocating for their studies. However, the current provision of Purpose-Built Student Accommodation (PBSA) is insufficient:

• Bed-to-student ratio: 1 : 13, indicating a substantial shortfall.¹
• Total PBSA beds: Approximately 107,000 across 850 assets.
• Projected additions: 14,500 new beds by 2026, still leaving a deficit of over 400,000 beds.²

This imbalance highlights the urgent need for new investment, especially in university cities with growing international appeal.

Investment Performance: Attractive Yields and Resilience

Investing in Spanish student housing offers competitive returns:

• Gross yields: Typically range between 5.5% and 6.5%, depending on location and asset quality.³
• Occupancy rates: High demand ensures robust occupancy, contributing to income stability.
• Many assets—particularly those located near historic campuses or in cultural hubs—also benefit from year-round demand, hosting not only students during the academic year, but also short-term educational programs and international students over the summer.

Many assets—particularly those located near historic campuses or in cultural hubs—also benefit from year-round demand, hosting not only students during the academic year, but also short-term educational programs and international students over the summer.

Premium Assets and the Evolution Toward Co-Living

Some premium-positioned PBSA properties—such as RS Bersy’s asset located directly on the campus of the University of Granada—are increasingly blurring the line between traditional student housing and the co-living model. These residences are appealing not only to undergraduates but also to graduate students, researchers, and junior faculty, especially when they offer higher-end finishes, privacy, and location-driven convenience.

This trend allows for:

• Greater rental flexibility
• Wider tenant profiles
• Stronger income durability

It also positions these investments closer to urban residential or hospitality products in terms of exit strategies. hospitality de media estancia.

Market Growth and Projections

The student accommodation market in Spain is poised for continued growth:

• Market size: Expected to reach €276.2 million by 2030, growing at a CAGR of 6.5% from 2025.⁴
• Major transactions: Azora’s acquisition of EQT Exeter’s 12-residence portfolio in late 2024 illustrates strong institutional interest.⁵

The long-term fundamentals remain strong, with persistent undersupply and growing investor appetite.

Regional Insights: Opportunities Beyond Madrid and Barcelona

While the capital cities draw attention, secondary markets like Seville, Valencia, and Granada provide excellent opportunities for well-structured student residence investments. Sevilla, Valencia y Granada ofrecen excelentes oportunidades para inversiones bien estructuradas.

For example:

• Seville has more than doubled its capacity in recent years, with student demand still outpacing supply.⁶
• Granada, home to one of Spain’s most prestigious universities, continues to offer underdeveloped PBSA potential in prime locations.

These markets allow investors to capture upside while avoiding the extreme competition and compressed yields seen in Madrid or Barcelona.

RS Bersy’s Role: Facilitating Strategic Investments

At RS Bersy, we offer end-to-end services:

• Stakeholder Engagement: Bridging property owners, developers, operators, and investors.
• Project Structuring: Including long-term leases, CapEx planning, and alignment with premium operators.
• Project Structuring: Including long-term leases, CapEx planning, and alignment with premium operators.

We understand that well-situated, well-operated PBSA can outperform traditional residential investments—not only in returns, but in stability and liquidity.

Footnotes

1. GSL Global, “Spanish PBSA Market Shows Growth Potential,” Jan 25, 2025.
2. Urbanitae Blog, “Student Accommodation: A Focus for Investors,” Dec 19, 2024.
3. AEW Research, “European Residential: Finding a New Balance,” 2024.
4. Grand View Research, “Student Accommodation Market Outlook – Spain,” 2025.
5. EQT Group, “EQT Exeter Completes Spanish Student Housing Portfolio Sale to Azora,” Nov 29, 2024.
6. El País, “Las residencias de estudiantes, la alternativa a la crisis de vivienda en Sevilla,” Nov 11, 2024.