The student housing market in Portugal has stood out as one of the most dynamic segments of commercial real estate, combining sustainable growth in demand, structural supply shortages and resilient yields compared to other alternative sectors.
According to the Portugal Student Housing Factsheet 2025, released by Worx, 36% of university students study outside their area of residence, international demand is growing by 14% per year, and there are only 35,800 beds for more than 448,000 students, of which 12,100 are in quality private residences. The average coverage rate is 8%, rising to 22% when adjusted for displaced students.
In a European scenario of greater uncertainty, this segment is attracting more and more capital, redirected from traditional assets to niches less exposed to the economic cycle. Since 2019, investment in student residences in Portugal has totalled €805 million, mainly through large-scale operations by international players, according to Worx.
The consolidation of the student accommodation market is based on four pillars: growing demand, especially from international students; the resilience of assets in uncertain scenarios; increased liquidity and interest from institutional investors; and the potential for diversification into alternative assets with highly competitive risk-adjusted returns.
João Tinoco, Investment Director at WORX, says that "the student accommodation market in Portugal has strong growth potential, making it one of the most promising niches in commercial real estate. This scenario creates significant opportunities for developers, operators and investors, whether through the development of new projects or the acquisition and management of existing assets, both in large cities (Lisbon and Porto) and in smaller cities (Braga, Coimbra, Évora, among others).”
The supply of student accommodation in cities such as Lisbon and Porto covers on average 26% and 45% of adjusted demand, highlighting a clear discrepancy between growing demand and existing supply capacity, according to the study. Other cities, such as Évora, Braga, and Coimbra, present great opportunities for expansion in this market, with low adjusted coverage rates and the potential for even higher prices.
In addition, the price difference between premium quality residences (with gym, cinema, swimming pool, library, among others) and conventional assets in the cities analysed reaches 120%, reflecting students' appetite for differentiated solutions and the potential for appreciation of projects offering superior quality.