The supply is increasing but is still falling short. Student residences is one of the segments that has changed the most in Spain in recent years. Marked by the sale of the RESA portfolio to the Dutch infrastructure fund PGGM (900 million euros), investment in this type of asset (known in English as Purpose-built Student Accommodation or PBSA) will reach 1.5 billion euros in Spain in 2022. What challenges does the product face in the Spanish real estate sector?
According to the report Student Residences. Analysis of a growing sector prepared by the consulting firm JLL, in 2021, Spain offered only 102,707 places for a total of almost 1.4 million students, 588,000 of whom need a bed. That translates into an oversubscription rate of 14 students per bed or a provision rate of just 7.3%. The number of beds is increasing, but the quantity is still insufficient to cover demand.
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