The Purpose-Built Student Accommodation (PBSA) market in Portugal has established itself as one of the most dynamic segments of the commercial real estate sector, combining sustained demand growth, structural supply shortages, and resilient yields compared to other alternative asset classes.
The fundamentals are robust:
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36% of university students live away from home;
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International demand has grown at an annual rate of 14% over the past five years;
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Current supply totals only 35,800 beds for 448,200 students;
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An average coverage rate of just 8%, which, when adjusted to displaced demand, reaches only 22%.
In a European context marked by political uncertainty and slower economic growth, there is a growing trend of redirecting capital from traditional assets toward niche sectors less exposed to economic cycles—such as student housing.
It is within this framework that Portugal stands out as a unique and high-potential opportunity in the student accommodation market, according to WORX Real Estate Consultants.
Since 2019, €805 million have been invested in student housing in Portugal, driven by large-scale operations led by international players. The consolidation of this market is supported by:
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Increasing demand, particularly from international students;
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Asset stability and resilience even during periods of economic uncertainty;
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Rising liquidity and appetite from institutional investors;
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Strong diversification potential into alternative assets offering highly competitive risk-adjusted returns.
João Tinoco, Investment Director at WORX, concludes:
“The student housing market in Portugal shows strong growth potential, positioning itself as one of the most promising niches in commercial real estate. This scenario creates significant opportunities for developers, operators, and investors—whether through new project development or the acquisition and management of existing assets—in major cities such as Lisbon and Porto, as well as in smaller urban areas like Braga, Coimbra, and Évora.”
According to the Portugal Student Housing Factsheet 2025 by WORX, the supply of student accommodation in Lisbon and Porto covers, on average, 26% and 45% of adjusted demand, respectively, highlighting a clear gap between rising demand and the limited installed capacity.
Other cities such as Évora, Braga, and Coimbra also present excellent market expansion opportunities, with low adjusted coverage rates and attractive pricing potential.
Moreover, the price gap between premium-quality residences (with amenities such as gyms, cinemas, pools, and libraries) and conventional assets in these cities reaches 120%, reflecting both students’ appetite for differentiated accommodation and the value creation potential of high-quality developments.
Discover more insights on Portugal’s student housing market in the newly released Portugal Student Housing Factsheet 2025 by WORX.
