The number of students registered in Spanish universities rose by 10% in 2011-12, having declined by 11.8% between 1998 and 2008 as the Spanish economy boomed. This reflects the counter cyclical nature of education.

With Spain’s youth unemployment rate at 55%, more young people out of work are returning to education to increase qualifications. Some 32% of students enrolled in Spain are over the age of 25, and 18% are over the age of 30.

The number of foreign students in Spain has risen steadily over the past few years, to 3.3% of total registrations, concentrated in Madrid (23.4%), Cataluna (17.3%), Valencia (14.6%) and Andalucia (12.5%). Some 40% of these students come from EU countries, with 33% from South American and the Caribbean, reflecting the number of Spanish speakers in this part of the world. The number of students from Latin American and the Caribbean rose by 80% from 2007 to 2011.

80% of the student housing stock is university run, the remainder are run by either universities or religious bodies, providing cultural, academic, religious or sporting facilities as part of their offer. The average rent of dedicated student accommodation is €92 per week. Strong competition comes from small scale landlords in the private sector, with more ‘accidental landlords’ adding to private rental stock given a weak sales market.

The average student housing provision rate across the university towns we have analysed is just 8%. While Spanish students have a strong tendency to live at home during their studies, it is estimated current provision satisfies just 50% of demand from intra-regional and international students.

Madrid offers the highest number of student accommodation places (12%), followed by Barcelona (8%), Salamanca, and Valencia, accounting for almost half the total stock in Spain. The strongest private operators in Spain are native and work under administrative concession agreements with public universities. The economic and debt crisis in Spain has resulted in an 80% fall in student housing completions over the last three years.

There are opportunities in the Spanish market, given a slowing in the delivery of new supply (the number of accommodation places growing by just 1.1% in 2012-13), and a growing student population. However, the domestic economy remains weak and the private sector increasingly competitive.

Taken from
Spotlight: European Student Housing