The demand for student residences exceeds by 380,000 beds the existing offer

The demand for student residences exceeds by 380,000 beds the existing offer

 

Among the main conclusions that endorse the huge potential of the business, JLL points out the unsatisfied demand, since according to its calculations there are currently 473,254 students who need accommodation in Spain, however there are only 93,600 beds in residences, so the unsatisfied demand is for more than 380,000 beds.

The factor of the demand joins, also, to the increase of the number of students in Spain and to the increase of the price of the house to rent in the main Spanish cities -of 11% in Madrid and of 8% in Barcelona-, that has a direct and positive impact in the promotion of residences to accommodate students, which are one of the investment assets with greatest potential, mainly due to their attractive returns. In particular, the residences generate one of the highest returns of the market, of 5.25%, together with the logistic assets (of 5.5%), and far above other assets such as commercial premises (3.15%), offices (3.75%), residential (3.75%) or shopping centers (4.25%).

Looking to 2018, JLL ensures that the main focus of attention will be on the acquisition of a single asset instead of portfolios, as well as the construction of new residences. In this sense, the consultant estimates that the future developments in the main university cities of Spain will add 10,000 extra beds to the existing stock in the market in 2020.

Iberian Property logo Iberinmo logo
Iberian Property is the best platform for investment in Spain & Portugal. Created for those who seek reliable information about players and deals happening in Iberia. Through updated database, reports, market indicators and daily news, we report “Who’s Who” in Iberian Real Estate!. Iberian Property is also proud to organize the most important international real estate investors’ meeting in Iberia - Portugal Real Estate Summit!