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, investment in student housing in Spain reached €756 million in 2024, consolidating it as one of Europe’s most dynamic markets. In addition, this rental model can deliver annual returns of 6–10%, outperforming traditional assets such as offices or standard residential properties.
If you are considering diversifying your real-estate portfolio, this article provides a comprehensive analysis of why, where and how to invest in student residences in Spain in 2025 to help you maximise returns.
A student residence is accommodation exclusively for university students and young learners, offering private or shared rooms, common areas (kitchens, study rooms or gyms) and often additional services such as cleaning, Wi-Fi or security included.
Unlike shared flats, student residences are usually managed by specialised operators and can be of two types: university residences, which are linked to an educational institution, or private residences, managed by investors or private equity funds.
These residences can be public or private (with agreements). They are managed by universities or partner organizations and usually feature regulated pricing and guaranteed demand.
These residences can be run by companies or private operators and tend to offer greater pricing flexibility or premium services.
Colivings combine accommodation with work and networking spaces, and typically attract international students and young professionals.
These types of residences target specific student or professional niches and are tailored to their particular needs — for example, residences for postgraduates, athletes, etc.
You might be interested in: what is coliving.
In 2024, Spain received more than 100,000 international students, with cities such as Madrid, Barcelona and Valencia remaining the preferred university destinations.
It is estimated that currently only about 15% of student rental demand is being met, creating upward pressure on rents.
While traditional rentals offer yields of around 4–5%, student residences can reach up to 10% return.
Unlike tourist rentals, students typically rent for fixed periods of 9 to 12 months, which ensures stable income.
Programs such as Erasmus+ and institutional scholarships promote student mobility and directly benefit the student-housing sector.
The student-rental model can offer greater resilience: education is a sector less affected by economic crises, there is less specialised supply (so lower competition compared with the general residential market), and geographic diversification means the model can work not only in large cities but also in university towns like Granada, Salamanca or Seville, which are attractive student destinations.
In this city there is a higher concentration of universities — such as Complutense and the Polytechnic — and rental prices are usually higher, averaging between €800 and €1,200 per month.
Here we can find an area that tends to attract international students, where the rental market has limited supply and strong demand.
Here we can find a lower cost of living combined with a high quality of life, with the University of Valencia and the Polytechnic University growing.
These two historic cities receive a large flow of Erasmus students and benefit from generally lower property acquisition prices.
In these areas we find attractive investment options characterized by a favourable climate and a steady increase in international students.
Student residences typically show very high occupancy, approximately 90–95% annually.
Because students occupy properties for long, pre-defined periods, you can secure steady income through long-term contracts.
You may be interested in: how to create a legally binding tenancy agreement.
The student-residence business is scalable by adding multiple residences and tends to be less sensitive to economic downturns.
Locations near universities and other educational centres offer significant capital appreciation.
An investor may face certain strict municipal regulations, especially regarding licences and habitability standards.
Operational management can be more complex than expected; factor in services and maintenance.
Informal house-sharing is common and can be strong competition by offering lower rents.
Choose locations close to universities and transport links — these are more highly valued.
Offering additional services — gym, high-speed Wi-Fi or cleaning — can help your residence stand out.
If you lack experience, seek to partner with managers specialised in student housing.
Consider collective investment models such as real estate crowdfunding or REITs.
Initial investment depends on the city and the size of the residence; setting up a 20-room residence can require between €500,000 and €1.5 million, including potential renovations.
Each model has its advantages. Private residences offer greater flexibility and potentially higher returns, while university-affiliated residences benefit from a more stable, guaranteed demand.
A change-of-use licence to collective residential use is required, and you must comply 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’s always important to consider factors such as student demand, local purchase and rental prices, and applicable local regulations.
Yes — especially if you delegate the management of the residence to a specialised operator, which allows you to enjoy steady income without handling 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 are looking for a stable, scalable business with future potential and the ability to generate passive income, this sector should be on your investment radar. If you are ready to capitalise on this opportunity, don’t hesitate to pursue it.
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Funded:
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Objective:
3.582.749,16 €
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