Portugal student residences attract €1.2 billion in investment

Student residence investment in Portugal

From 2019 to 2025, investment in student residences totalled €1.2 billion. Of that amount, approximately €942 million came from property sales, with the balance generated through investment transactions to develop new accommodation. Despite this level of investment in Portugal’s sector, supply remains constrained, according to Savills’ report, “The Evolution of Purpose-Built Student Accommodation in Portugal”.

Over the six-year period, 20 transactions were recorded in this segment. Most took place last year, following Nido Living’s acquisition of Livensa Living’s Iberian portfolio for around €1.2 billion. The precise amount invested in Portugal is not known, as the deal covered ten assets across Madrid, Seville, Valencia, Lisbon and Porto.

Within the private market, investors have largely been European groups already operating student accommodation in other countries. However, investors with a more cautious profile, seeking stable assets, are also becoming more prominent.

Student residence supply remains limited

In 2025, Portugal had around 26,000 beds in student residences, meaning that supply covered just 5.8% of students. Roughly half of these beds were owned by public and private universities, while private investors accounted for the other half.

Porto has the largest number of beds in private student residences, at approximately 5,400. Lisbon, meanwhile, has almost 4,500 beds.

Despite supply standing at nearly 6%, Portugal remains well behind other European countries. In the United Kingdom, which has the largest volume in this segment, operational beds represent 30.9% of the student population.

The report warns that rising prices in the rental market are increasingly directing students towards residences. Yet these facilities are unable to meet demand, which continues to grow among both domestic and international students.

New beds and student residence rents

Nevertheless, a further 2,000 beds in private student residences are planned between 2026 and 2027. Of these, 1,000 will be in Lisbon and 1,600 in Porto. This investment is expected to increase the availability of student beds by slightly more than one percentage point.

In terms of rents, the standard price for a bed in this accommodation is highest in Braga, at €670, compared with €595 in Lisbon. Covilhã records the lowest figure, at €310. In the premium segment of these residences, the capital heads the ranking at €1,620, followed by Porto at €1,028.