The Purpose-Built Student Accommodation (PBSA) market in Portugal has established itself in recent years as one of the most dynamic segments within commercial real estate. Between 2019 and 2025, investment in student residences totalled €1.2 billion. Of this amount, approximately €942 million corresponded to portfolio transactions, mainly involving operational assets.

Despite this volume of capital, installed capacity remains limited. Portugal currently offers 26,000 student beds. Around half are within university and institutional residences, with the remainder in private PBSA schemes. This translates into a national coverage rate of 5.8%, placing the country behind other European markets. In the United Kingdom, for example, student housing provision reaches 30.9%, and in Sweden 20.4%.

Dominic Orchard, Director, Savills OCM, comments: “According to our 2026 investor survey, PBSA remains the most sought-after sector within the European Operational Real Estate (OpRE) segment for the second consecutive year. Portugal has become one of the most attractive markets for student housing investors, and we expect the region to further strengthen its position, supported by supply and demand fundamentals and the yield levels currently available in the market.”

The student housing market in Portugal is now led by European investors, bringing experience from markets such as the UK, Germany and the Netherlands. In recent years, there has also been a growing presence of more conservative investors, focused on stabilised assets with high occupancy rates.

Rising demand and pressure in university cities
On the demand side, figures continue to grow. In the 2024/2025 academic year, Portugal had 456,032 higher education students, up 1.74% year-on-year. In the same period, 80,065 students were international, representing an increase of 3.35% compared to 2023/2024.

Portugal now has six business schools ranked among the top 100 in Europe in the Financial Times European Business Schools ranking, increasing the country’s international visibility and contributing to the growth in foreign students and housing demand.

This pressure is most visible in key university cities such as Lisbon, Porto and Coimbra. Student residences show very high occupancy levels, and rents continue to rise. At the same time, the traditional rental market offers fewer and fewer one-bedroom apartments and studios at prices compatible with student budgets. Many students end up competing for the same properties as young professionals or families, making access to suitable and affordable housing increasingly difficult.

New wave of investment and supply growth
Despite the challenging context, the pipeline shows that the market continues to expand. Current projects point to the creation of around 2,000 new beds in private student residences between 2026 and 2027. Even so, the pace of expansion remains below what is needed to meet growing demand for student accommodation in Portugal.

Lisbon and Porto account for a significant share of this new supply. Lisbon currently has more than 4,500 beds in private student residences, with over 1,000 additional beds expected by 2025/2026. In Porto, more than 5,400 beds are already operational, with around 1,600 additional beds planned in the coming years.

On the operator side, the market is dominated by several large international groups. Livensa Living remains the largest student housing operator in Portugal, followed by Xior, MiCampus and LIV Student, all of which have been expanding their portfolios and strengthening their presence across the country.

The new wave of student residences brings management models and service standards aligned with those already seen in major European capitals. Study rooms, gyms, shared kitchens, laundry facilities, social areas and 24-hour security are no longer seen as “extras” but have become minimum requirements, particularly for international students, who represent a growing share of demand.