Back to school 2017 marked a pivotal moment for Spain’s real estate scene, especially in the student housing segment. Axa, the French insurer, joined forces with CBRE and Greystar to acquire Resa, the continent’s largest operator in this niche. The move set a new benchmark in investment activity, lifting Savills’ records from 27 million euros the prior year to more than 860 million euros in that year. Five years on, the record endures, and as of the current year CBRE reports the volume already surpasses 1.3 billion euros, with expectations for a modest rise by December.
Who are the major owners of student residences in Spain?
At that time, the record-breaking momentum came from another Resa-related deal: a sale where AXA, CBRE and Greystar exited by selling to the Dutch fund PGGM for around 850 million euros. Even without that transaction, mid-year investments reached roughly 460 million euros, a 23% increase versus the same period in 2021. In Barcelona, the June total alone exceeded 44% of the previous year’s full volume.
“We have seen investment volumes fluctuate between 300 and 500 million euros for several years, this year we expect the Resa operation alone to exceed 850 million and also approach 600 million euros,” noted the head of student housing at CBRE. He highlighted the sale of two Barcelona centers among the standout operations. When Patria contributed more than 130 million euros and the University of Barcelona’s Sant Jordi College moved to a fund manager, Plenium Partners, for roughly 25 million euros, the market signaled further consolidation. He warned that two or three platforms could be sold within the next six to twelve months.
In short, the expert confirmed, the industry is booming. It is attracting investors outside the sector who seek a reliable, high-quality asset class. “This sector shows resilience, with strong investment volumes, asset exits to institutional buyers, and margins that maintain high repetition even through shocks like the pandemic,” the director explained. For example, two residences acquired by Patrizia remain in operation with very high occupancy, while Commerzbank purchased another center in the 22@ district last year and will open the residence with a two-year lease already locked in.
“The Spanish market is aligning with international standards and improving housing stock quality, which strengthens its position in Europe,” Savills notes. “The arrival of students draws in new investors and makes Spain an attractive destination for study,” the consultant adds.
Data show 36 new dormitory projects planned for this year and next, adding about 14,600 beds to the country. The sector closed 2021 with over 100,000 beds spread across six major cities, with Barcelona, Madrid, Valencia and Seville leading the way.
The sale of Resa for about 850 million and the broad interest from funds in the sector mobilized a market that closed the mid-year with 23 percent more capital than the prior year and surpassed the 2017 peak.
Supply gap
CBRE’s figures show more than half a million students in need of accommodation in Spain. The demand continues to grow, and the bed-to-student ratio in Spain stands at about 6.5%, well below the European average of around 19%. This supply gap has driven a wave of deals in the first half as investors pursue filling the gap, according to Miriam Goicoechea, director of research in CBRE Spain.
John Manuel Brown, Life Director at JLL, notes that the imbalance—coupled with a shortage of enterprise-grade operating product—keeps the market on the move. He expects joint ventures with local developers to bring projects from the pipeline to completion and foresees a shift in the industry away from a single operator-dominated model toward larger, multi-platform structures that manage a broader mix of student housing, co-living, and related assets.
Data collections show 1,053 centers in Spain at the end of 2020; eight of ten were university dormitories, with the remainder serving senior colleges. The same report projects a minimum of 1,113 centers by 2023, as projects in development continue. Barcelona is projected to receive the most beds, while Madrid is expected to close the gap as more capacity becomes available in the coming years.
Investment opportunity
Whether aimed at students, seniors, or multi-occupant living, CBRE is clear: investment will keep rising in what they describe as living-friendly, connected dormitories and housing in general. “This is the biggest investment opportunity for the next decade,” says De la Torre.
By mid-year, the residential sector stands as the second-largest real estate investment driver after the commercial sector, totaling around €2,450 million—about 71% higher than the same period in 2021. Roughly a third of that sum, around €900 million, flows into student centers and living arrangements that bring people together, closely tracking the momentum seen in logistics and offices.
Growth and evolution
A parallel evolution in the student housing space centers on “living together” models—buildings or homes where rooms are rented to people with similar profiles and shared spaces for study, exercise, or recreation. “This market mirrors the dormitory setup from a decade ago: a few operators remain, many platforms exist, opportunities abound, yet uncertainty persists,” summarizes CBRE’s Xavier Caro, head of partnerships. He predicts that active platforms will mature, attract investment, and potentially become tradable assets in the future, especially in mobility-friendly cities like Brussels where professionals and students move frequently.
Even now, the sector has moved significantly more money in Spain in this period than a year earlier: a single Madrid operation pushed more than €400 million, skewing overall statistics. The concept of living together is seen as collaborative and appealing to digital nomads, with initial focus on locales like the Canary Islands and Jávea before expanding to major urban centers where young professionals seek medium-term housing options.