The real estate sector in Spain continues to evolve, and one of the assets that has gained the most relevance in recent years is investment in student housing. With steadily growing demand—driven by the sustained increase in student numbers and the shortage of affordable accommodation—this niche has become one of the most profitable options for investors.
According to statistics, in 2024 investment in student housing in Spain reached €756 million, consolidating its position as one of the most dynamic markets in Europe. In addition, this rental model can offer annual returns of 6% to 10%, even outperforming other traditional assets such as office buildings or residential housing.
If you are considering diversifying your real estate portfolio, this article provides a comprehensive analysis of why, where, and how to invest in student housing in Spain in 2025, helping you maximize your returns.
A student residence is a type of accommodation exclusively intended for university students and young people in training, offering single or shared rooms, common areas (such as kitchens, study rooms, or gyms), and, in many cases, additional services such as cleaning, Wi-Fi, and security included.
Unlike shared apartments, student residences are usually managed by specialized companies and can be of two types: university residences, which are affiliated with an educational institution, and private residences, which are managed by investors or investment funds.
This type of residence may be public or private under an agreement. They are managed by universities or partner organizations and typically have regulated pricing and consistently high, fully guaranteed demand.
These types of residences are managed by companies or private individuals and are characterized by offering greater pricing flexibility or by providing premium-level services.
Coliving spaces are residences that combine housing with shared work and networking areas, typically attracting international students and young professionals.
This type of residence is aimed at specific niches of students or professionals and is tailored to their particular needs—for example, residences designed for postgraduate students, athletes, and similar groups.
You might be interested in: What is coliving?
In 2024, Spain welcomed more than 100,000 international students, with cities such as Madrid, Barcelona, and Valencia continuing to rank among the most popular university destinations.
It is estimated that currently only about 15% of student housing rental demand is being met, which is creating upward pressure on rents.
While traditional rentals offer returns of around 4% to 5%, student residences can achieve returns of up to 10%.
Unlike tourist rentals, students typically lease properties for fixed periods of 9 to 12 months, which helps ensure stable income.
Programs such as Erasmus+ or institutional scholarships encourage student mobility and directly benefit the student housing rental sector.
The student rental model can offer greater resilience, as education is a sector that tends to be less affected by economic downturns. It also faces less competition compared to the traditional residential market due to the more limited supply of specialized options, and it allows for geographic diversification—making it effective not only in major cities but also in places such as Granada, Salamanca, or Seville, which have emerged as attractive destinations for students.
In this city, there is a higher concentration of universities—such as Complutense University and the Polytechnic University— and rental prices tend to be higher, averaging between €800 and €1,200 per month.
Here we can find an area that tends to attract international students, with a rental market characterized by limited supply and high demand.
Here we find an area with a lower cost of living while still offering a high quality of life, where the University of Valencia and the Polytechnic University are experiencing continued growth.
These two historic cities attract a large number of Erasmus students and have the advantage of offering lower property acquisition prices.
In these areas, we find investment opportunities characterized by a favorable climate and a steady increase in international students.
Student residences have very high occupancy rates, averaging approximately 90% to 95% annually.
Since students spend long, predetermined periods of time at their place of study, it is possible to secure stable income through long-term lease agreements.
You may be interested in: how to create a legally binding tenancy agreement.
The student housing business offers strong scalability through the development of multiple residences and has the advantage of being less sensitive to economic downturns.
Locations near universities and other educational institutions offer strong capital appreciation.
An investor may face certain strict municipal regulations, particularly regarding licensing and habitability standards.
Operational management can be more complex than expected, and services and maintenance requirements must be taken into account.
Shared apartments rented informally, without complying with regulations, are very common and can represent strong competition by offering lower rental prices.
Choose locations that are close to universities and transportation services, as these are more highly valued.
Offering additional services such as a gym, high-speed Wi-Fi, or cleaning services can help differentiate and set your residence apart from the available options.
If you don’t have experience in this field, it’s ideal to seek partnerships with specialized managers in student housing or residential property management.
Consider collective investment models such as real estate crowdfunding or REITs.
The initial investment for a student residence depends on the city where it is located and the size of the facility, but setting up a 20-room residence may require between €500,000 and €1.5 million, including potential renovation costs.
Each option has its own benefits. Private residences offer greater flexibility and higher profitability, while university-owned residences have the advantage of guaranteed demand.
A change-of-use license for collective residential use is required, along with compliance with current safety regulations.
You must pay the Property Tax (Impuesto sobre Bienes Inmuebles, IBI), personal income tax on rental income (IRPF), and VAT for certain additional services.
It is always very important to take into account factors such as student demand, purchase and rental prices in the area, and any applicable local regulations.
Yes—especially when you choose to delegate the management of the residence to a specialized company, which allows you to enjoy steady income without having to handle day-to-day operations yourself.
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Investing in student residences in Spain in 2025 is one of the most solid options to obtain returns above 6% with relatively low risk. The combination of growing demand, current supply shortages and potential institutional support make it a key asset for diversifying a real-estate portfolio.
Therefore, if you’re looking for a stable, scalable business with long-term potential that can become a source of passive income, this sector should be on your investment radar. If you’re ready to capitalize on this opportunity, don’t hesitate to go for it.
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Funded:
100%
616.679,01 €
Objective:
616.679,01 €
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