Student residences need an investment of 7,000 million

Student Housing

javier | Nov. 17, 2022, 6:44 p.m.

Spain will require an investment of 7,000 million in student residences to be able to attend the demand growth and update the obsolete supply. Spain will require an investment of about 7,000 million in student residences to be able to meet potential demand in the next decade and investment until 2035 to maintain the current rate of growth and 3,220 million the investment required to reform the 58,540 obsolete stock spaces that exist in the market. From JLL they emphasize that, while the offer of beds in student residences last year reached 102,707 places, the total number of students during the academic year 2020-2021 was almost 1.4 million, which leaves a rate of 14 students per bed. Regarding the volume transacted for 2022, the consultant estimates that the investment at the end of the year will reach 1,500 million, double compared to the investment made a year ago, after the purchase of Resa by PGGM. From the consultant they explain that the shortage of product to the sale is leading investors to buy projects of future residences or under construction. Thus, 34% of the investment since the last quarter of 2021 has been made under forward purchase structures (commitment to purchase) or forward funding (payment in installments). operators Resa (from PGG M), MiCampus (from Stoneshield), Livensa Living (Brookfield and Early), Yugo (GSA and Harrison Street) and the Belgian Socimi Xior Student Housing are the five operators with the largest number of beds under management. They are followed by the Autonomous University of Barcelona, ​​which is the public entity with the largest number of beds under management. "The current liquidity in the capital markets, coupled with the strong fundamentals of this sector, suggests that it will be one of the most resilient types of assets in terms of regarding value adjustments", explains Juan Manuel Pardo, Director of Living at JLL Spain.