In Spain, there is a deficit of more than 400.000 beds, while in Portugal the deficit is of more than 20.000 beds, according to data from JLL, company specialized in managing real estate investments.
This gap is increasing, boosted by the growing number of national and international displaced students looking for accommodation in both countries, as a consequence of new international reference universities and business schools, quality of life and other factors. So much so that, in Spain, despite the number of available beds having increased 1.5%, the higher growing number of students in need of accommodation increased the deficit in 3.7%.
Both markets have a poor offer to face the ever more demanding needs from students looking for accommodation. In Spain, the alternative is to rent and 97% of the rental market in is in the hands of private landlords. In Portugal, the situation is similar and is added to the offer of student residences conceived for low rents.
The experts at JLL predict an increase in the number of places available in student residences. In the Iberian Peninsula, it is expected for the offer to increase 2.9% in 2019, up to 93.712 places available and around 5.2% in 2020 with 98.582 beds.
María Empis, in charge of consulting and research for JLL Portugal, highlights that «the student residences sector is the latest trend in the Portuguese real estate market. During the last three years we witnessed the opening of residences in Lisbon and Porto with occupation rates close to 100%. That is why the main international operators are already presenting projects to incorporate around 10.000 beds for the next five years».
«Everything suggests that this trend will continue in the short and medium term in the Spanish market, as the current developing projects are concluded and added to the market. When the student residences’ investment opportunities for more than 50 million euro materialize, the market will attract a growing volume of institutional capital, replicating the trends of more consolidated markets, such as the British market», explains Nick Wride, director of Living & Alternatives for JLL España.
JLL’s study gathers a total of 18 operations for the acquisition of terrains or buildings to be repurposed in Spain, which represent a volume of 141 million euro, the highest ever recorded. 55% of all investment took place in Madrid and Barcelona, and the main regional cities received the remaining 45%. These investments represent a total of 6.200 new beds in Spain.