Investment in Spain’s purpose-built student accommodation (PBSA) market reached almost €660 million in the first half of 2026, twice the volume recorded in the same period last year, according to Savills research.
The strong investment momentum reflects the growing maturity of the Spanish PBSA sector, which has become the second-largest student accommodation investment market in Europe, behind the UK. Investment exceeded €1.8 billion in 2025, although this was significantly boosted by CPPIB’s acquisition of Livensa Living’s Spanish assets for more than €900 million.
Savills identifies a significant structural imbalance between demand and supply as a key driver of the market. Around 650,000 university students in Spain are estimated to have a need for accommodation, compared with approximately 118,800 PBSA beds, highlighting a substantial shortage of student housing.
Demand is being reinforced by the internationalisation of Spain’s university system. International students accounted for 11.4% of university enrolments in 2024-25, up from 6.8% a decade earlier, while international student numbers have grown by around 7% annually.
Madrid, Barcelona and Valencia remain the main investment markets, concentrating a significant share of both demand and existing supply. However, Savills also points to opportunities in smaller university cities, where PBSA provision remains limited and institutional competition is lower.
The sector's growing institutionalisation is also reflected in prime yields, which have stabilised at 4.5%. Savills says the compression reflects investors' increasing perception of PBSA as a more core-like asset, supported by resilient demand and greater visibility of long-term income.
