A single room (with shared bathroom and kitchen) in the capital costs 11.6% more than the 699 euros/month paid in Barcelona. On the other hand, studios are more expensive in Barcelona: 1,305 euros/month.
The custom-built student accommodation (Pbsa) segment is also hot. The largest transaction in this asset class in Spain took place last November, when EQT Exeter sold a portfolio of twelve properties in nine Spanish cities to an Azora vehicle. Some sources estimate the transaction at 450 million euros.
The Spanish market is undersupplied with student beds. So much so that the prices that every person has to pay during their university years are high. A single room (with shared bathroom and kitchen) in a university residence in Madrid costs on average 780 euros/month. According to data from Bonard, a consulting company specializing in this segment, during the first 11 months of 2024, a room in a public residence in the capital has an average cost of 601 euros / month, while in private residences, the price rises to 897 euros.
In this type of product, prices in Madrid exceed those of the Catalan capital by 11.58%, since the average in Barcelona is 699 euros/month. In the city of Barcelona, a single room in a public residence has an average price of 586 euros, while in private residences it reaches 732 euros.
On the other hand, studios (with private bathroom and kitchen) are more expensive in Barcelona, where they reach 1,305 euros/month (charges included, but without meals). In this case, Madrid is below the Catalan capital, with an average monthly rent of 1,217 euros.
In private residences in Madrid the price can reach 897 euros
Martin Varga, director of real estate development at Bonard, says that “rent growth will remain above inflation in most European countries”. This is one of the reasons why “student housing is one of the most attractive investment opportunities on the market”, according to the manager.
Regarding Pbsa transaction yields, the consultancy emphasizes that their levels are recovering after the declines of the Covid years. In Spain, yields reached 5.75% in 2017 (and 5.80% in 2020). After falling to 4.50% during the statewide pandemic, they are now recovering to an average of 5% in 2024.
By city, Madrid and Barcelona achieved yields of 5.30% in 2018 (1st data available). After a few years of decline, they both returned to 5% in 2024. The difference between the two is that the Catalan capital recorded a more punctual, but stronger decline: in 2022, it hit the ground at 4.20 %, while Madrid remained at 4.50% in both 2021 and 2022.
The Spanish city that stands out for its yield is Seville, with 6% in 2022 (the highest yield in Spain in recent years).
Yields in this segment average 5%
Bonard indicates that the operator with the largest number of student beds (operational and under development) in Spain is Resa, with 11,157 units. MiCampus, with 9,519 units, and Yugo, with 6,893 beds, complete the podium. It is closely followed by Livensa Living, with 6,649 units, and Nodis is 5th, with 4,283 beds.
Source : Ejeprime
