The Purpose Built Student Accommodation (PBSA) market in Portugal has gained an increasing relevance in the real estate investment market but there is still much room for growth both in Lisbon and Oporto as in other cities around the country.
The living sector across Europe has been gaining remarkable importance in the real estate investment market, almost equaling, last year, the office market for the first time since there are records.
In Portugal, investment in the alternative living sector has also increased significantly over the last 4 years having represented approximately 6% of the total investment in Q1 2022. With some deals in the pipeline, the total value for this year is set to increase.
The growing attractiveness of the alternative living sector for institutional capital is undeniable. Certainly, the way these assets performed during the Covid-19 pandemic was instrumental in proving their resilience, need and expected growth for the next few years.
In Portugal, modern student housing schemes have contributed meaningfully to the increase in investment in the alternative living sector with important institutional capital having been deployed in several assets operating and showing very good performance.