According to the Student City Index report by international investment firm Patrizia, Spain is firmly strengthening its position in the specialized student accommodation (PBSA) market in Europe.
Key highlights of the report:
Madrid (5th place in the ranking)
- Active academic environment.
- Growing number of international students.
- Attractive yields with limited supply.
Barcelona (10th place)
- A combination of prestigious universities and global recognition.
- A mature PBSA market with strong demand and supply shortages.
Valencia (top 50)
- Confirms sustained investor interest in Spain.
- Promising growth potential in the medium term.
How were the cities evaluated? Patrizia experts assessed 180 university cities across 21 European countries using three key criteria:
- Demographics: size of the student population, age profile, and share of international students.
- Academic reputation: quality of education, graduate career prospects, and city livability.
- Market structure: housing supply, liquidity, and long-term growth potential.
Based on these data points, cities were classified into five investment tiers — from "prime" to "emerging" — to help investors tailor their strategies to their desired risk-return profiles.
Why invest in PBSA?
Higher yields compared to traditional residential property.
Stability: short lease terms and consistent demand, even during economic downturns.
Structural supply shortage across Europe + increasing student mobility.
Patrizia announced the launch of the Transeuropean Living fund, aiming to raise €1 billion to tackle Europe’s housing shortage. The fund will target alternative assets, including student residences and multi-family housing.
Spain is emerging as a key destination for institutional investors, thanks to a unique combination of rising demand, academic prestige, and global appeal.