A severe shortage of supply is leaving students struggling to find affordable accommodation. New developments are progressing slowly, and the near absence of a traditional residential rental market is pushing students and young professionals towards alternative living solutions. Meanwhile, strong investor interest increases competition for limited opportunities, placing the PBSA sector firmly in the spotlight.
Demand drivers are equally compelling: Portuguese universities are climbing in global rankings, the cost of living remains relatively low and the country offers excellent weather, delicious food, rich cultural and leisure activities, and stunning beaches — including world-class surfing. Increasingly, universities in Portugal are joining international student exchange programs, offering comprehensive academic experiences that include accommodation in private PBSA developments.
This year’s report explores the current market fundamentals — supply, demand and recent investment activity — and takes a closer look at rental growth trends in Lisbon and Porto over the past three years. We also provide insights into what the future may hold, considering the upcoming development pipeline.
Although the first modern larger PBSA schemes only began operating eight years ago, the market in Portugal is clearly consolidating and gaining maturity. All indicators suggest a promising and steady path forward — with fundamentals pointing clearly in one direction: up!
