Global Rush: Spain's Student Housing Market Booms

Spain has become a hotspot for global investors eyeing the student housing market, spurred by an uptick in international students ready to pay high rents. Major cities, including Madrid and Barcelona, are witnessing a surge in interest, driven by inflation-beating returns and a 77% increase in international enrollments over the past decade.

This year may set a record for student housing sales, bolstered by Canadian pension fund CPP's 1.2 billion euro purchase of Iberian student flats operator Livensa. U.S. developers Greystar and Hines are keen to expand their Spanish portfolios, viewing the market's fundamentals as the strongest in Europe.

Despite relatively lenient regulations allowing for higher rents, the influx of international cash creates social challenges. Premium accommodations target overseas students with hefty budgets, leaving local students struggling to find affordable housing. This investor-driven boom highlights Spain's unique position in offering affordable tuition and less restrictive migration policies.

(With inputs from agencies.)