Student Housing in Spain - An outlook of a growing market in transformation April 2018 - JLL
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Student Housing in Spain An outlook of a growing market in transformation April 2018
2 Student Housing in Spain | 2017
Contents 1. Introduction 2. Spain, a growing market 2.1 Macroeconomic backdrop 2.2 Spanish university system 2.3 Student mobility 2.4 Accommodation demand estimate 2.5 Why Spain? 3. Student accommodation 3.1 General outlook 3.2 Privately rented accommodation 3.3 Student residences 3.4 Analysis of student accommodation supply in Madrid 3.5 Analysis of student accommodation supply in Barcelona 3.6 Analysis of student accommodation supply in other Tier 2 cities 3.7 New developments 4. Investment in student accommodation 4.1 Yields 4.2 Main transactions 4.3 Debt financing in the student housing sector 5. Challenges and trends 5.1 Regulatory framework 5.2 The students of the future
01. Introduction
4 Student Housing in Spain | 2017
ResidencStStudentOver the past two decades, the the standard of living and the estimates the current shortfall between
global student housing sector has major tourist appeal. Moreover, an existing supply and actual demand at
experienced rapid growth, fuelled by increasing number of students are 380,000 beds.
favourable demographic trends. The choosing to study at universities
rise in student numbers has created located in a different province from Very little purpose-built student
strong demand for student housing, their family home. We estimate that accommodation in Spain is of the
but universities across the globe a total of 473,254 students sought current generation of facilities that
were unprepared to react to the rise accommodation in the 2016-2017 offer common areas where students
in enrolments and create adequate academic year in Spain. can meet and work. Co-living, a new
student housing; while at the same concept that offers an entirely new way
time their existing on-campus facilities The private sector responded to the of living, is set to grow and become a
became outdated. strong demand, developing purpose- real alternative to traditional housing.
built accommodation aligned with This new concept is becoming the
Spain is an attractive international student needs. However, this has preferred lifestyle choice many among
student destination for a number been insufficient to cover the current young, internet-savvy professionals,
of reasons, such as the wide range shortfall and a sizeable number of as it offers a new way to live, work and
of globally renowned degrees and students in Spain are unable to secure social under one roof.
master's programmes on offer, a place at a student residence. JLL
Student Housing in Spain | 2017 502. Spain, a growing market
6 Student Housing in Spain | 2017
ResidencStStudentSocioeconomic taking the unemployment rate down to The positive macroeconomic
16.55%, down 2.09 points on the same indicators and optimistic outlook for
background quarter in 2016. The recent group of 2018 make Spain the ideal location
graduates has registered the biggest to attract both international and
Macroeconomic backdrop fall in unemployment, down 6 points domestic capital.
on the previous year.
The Spanish economy grew at a The outlook for Spain in 2018 is
healthy pace in 2017. GDP was up 3.1% Thanks to the improved economic positive and the country is set to
YoY, according to Oxford Economics, situation and job creation, household remain one of the fastest-growing
which is 6 basis points higher than the wealth has recovered to pre-crisis economies not only in Europe, but
EU average of 2.5% YoY. levels, following efforts to pay down globally. However, the pace of growth
debt. According to the Bank of Spain, will be slower at an average of 2.9%
Domestic demand was the main driver net household financial wealth in the per annum, according to Oxford
of growth in 2017, up 2.9% versus 2016. third quarter of 2017 stood at €1,332 Economics, due to a number of factors,
Private consumption remained strong, trillion, a rise of 4.3% on the same such as weaker household spending
up 2.4% YoY, whereas gross fixed capital period in 2016. and political uncertainty in Catalonia,
formation rose 5.0% YoY, according to which will put downward pressure on
Oxford Economics. This growth and increase in demand by growth prospects should it persist.
households and companies comes against
The number of people in work grew by a backdrop of moderate annual inflation of
2.65% YoY in the last quarter of 2017, 2.0%, thanks to low energy prices.
GDP, consumer spending and gross capital formation*, % YoY
8
6
4
2
0
-2
-4
-6
-8
-10
2012 2013 2014 2015 2016 2017 2018
GDP Consumption Investment
Source: Oxford Economics. *Seasonal and calendar adjusted figures.
Student Housing in Spain || 2017
2017 7Socio-demographic backdrop The percentage of population with higher education studies in Spain is above both the European Union average and that of certain major European economies. Of the population aged 25-34, 41% have undertaken some sort of tertiary education, including Advanced Vocational Training and University Degrees or equivalents. Of the total population aged 25-64 in Spain, 35.7% have completed some sort of higher education studies, which is more than in France, Germany and Italy. The adult population is increasingly choosing to undertake higher education courses, up from 22.7% in 2000 to 35.7% in 2016. The population aged 18-24 is expected to grow over the next few years, reaching an increase of 11% in 2025 versus the 2018 figure, according to INE data. The ongoing improvement in education levels, coupled with the growth of the population aged 18- 24, will have a positive impact on student accommodation needs and demand over the next few years. 8 Student Housing in Spain | 2017
Percentage of the population with Higher Education studies, as % of total (2016)
60%
50%
40%
30%
20%
10%
0%
United Kingdom Spain France Germany Italy
Aged 25-64 Aged 25-34
Source: Education at a Glance 2017, OECD
Expected number of people aged 18-24 residing in Spain
3.500.000
3.400.000
3.300.000
3.200.000
3.100.000
3.000.000
2.900.000
2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: INE (National Statistics Institute)
Student Housing in Spain | 2017 9Spanish University
System
The Spanish University System at an average of 1.14 per year. The In the 2016-2017 academic year, 58
(known in Spain as SUE), adapted Autonomous Communities of Catalonia, more Undergraduate courses were
to the European Higher Education Madrid and Andalusia are home to the taught compared to the previous year,
Area (EHEA) since 2017, is made up highest number of institutions. although this increase is largely due to
of 1,051 centres of learning (schools a 3.9% rise in new courses at private
and faculties), versus 1,049 during the The Spanish higher education system institutions. The same pattern can be
previous academic year. consists of 3-4-year Undergraduate1 seen with Master’s and PhDs taught at
programmes, 1-2 year Master’s private institutions, which increased
These schools and faculties belong to programmes and PhDs. by 4.9% and 11.7%, respectively. The
82 institutions scattered across the number of Master’s courses taught at
length and breadth of Spain, 50 of which In the academic year 2016-2017, the public universities has fallen by 1.8%
are public and 32 private universities. Spanish University System as a whole versus the previous academic year,
The number of private institutions in taught 8,3782 higher education courses, while PhD courses grew by 2.3%.
Spain has continued to rise in recent of which only 352 are available through
decades, increasing from 7 in 1995 distance learning universities and 40 at
to the current level of 32, opening special higher education institutions.
Breakdown of the number of universities by type and by either on-campus or distance learning
On-campus public 1 - - 1 1 -
1 2 -
On-campus private 3 - - 1 1 -
Distance learning
1 - 1
and special universities
1 1 - 7 4 1
4 4 1
6 7 1
1 - -
5 3 1
1 - - 1 - -
2 1 -
9 1 1
2 2 - 47 27 8
Source: Ministry of Education. Spanish University System, Data and Figures. Academic year 2016-2017
10 Student Housing in Spain | 2017University System
in Figures
Undergraduate
32
5
Private
universities +1.5% +3.9% 2,781
27
47
50
21 Public
universities
Master´s
-1.8% +4.9% 3,772
Public universities
On-campus
Distance learning
Special
Private universities
On-campus
PhDs
Distance learning +2.3% +11.7% 1,105
0 1000 2000 3000 4000
Number of courses offered in Spain
Public universities
Private universities
Source: Ministry of Education, 2017. Academic year 2016-2017.
* This includes joint Undergraduate and master’s programmes
1
For the purposes of this report, the term “Undergraduate”
includes all students holding post-Bologna Process degrees,
as well as students holding Ciclo 1 & 2 certifications [the
former diploma and bachelor’s degree levels] who began
their studies before the Bologna reform. These students
number 16,273 and represent 1.2% of the total.
2
These include Undergraduate, Master’s, PhDs and Joint
Official Study Programmes at on-campus universities,
distance learning and special institutions.
Student Housing in Spain | 2017 11Number of students in Spain
In parallel to the growth of the during the 2016-2017 academic year, PhDs account for a small part of the
academic offering, the number up by 10,000 on the previous year, total, this segment has registered the
of students enrolled in Spain according to preliminary data issued highest growth, up 20% on the previous
continues to rise. The total number by the Ministry of Education. Although academic year.
of students reached 1,558,685
Number of students enrolled in Spain
66,479
184,745 Undergraduate programmes
4% Master´s
12% PhDs
84%
1,307,461
Source: Ministry of Education. 2016-2017 academic year. Provisional data
Growth in enrolment figures by level of study
Undergraduate Master´s PhD
+1.2% +8% +20%
As regards the above results, the
growth in the number of students
enrolling in Master’s and PhDs
is worthy of mention. This trend
reflects students increased
specialisation to gain leverage
in the labour market.
Source: Ministry of Education. 2016-2017 academic year. Provisional data
12 Student Housing in Spain | 2017Autonomous Communities with the highest number of Undergraduate, Master’s and PhD students
Madrid Catalonia Andalusia
291,199 248,172 242,569
Source: Ministry of Education. Academic year 2016-2017. Provisional data
Change in number of students (Undergraduate and Master’s)
Number of international students
1.600.000 120.000
Number of students (Spain)
100.000
1.550.000
80.000
1.500.000
60.000
1.450.000
40000
1.400.000 20.000
1.350.000 0
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017*
Spain (left axis) International students (right axis)
Source: Ministry of Education. 2016-17 academic year *Provisional data for on-campus and distance learning
• The total number of students dropped by 4.9% between 2011-2012 and 2013-2014, mainly due to the economic crisis.
However, the last academic year marked a turning point and this steady upward trend has continued into this year.
• The shift to the Bologna Plan also triggered a further drop in student numbers between 2011-2012 and 2014-2015, due to the
cut in the number of years of study from 5 to 4.
• The number of international students has grown year on year, registering the sharpest rise in 2016-2017.
Student Housing in Spain | 2017 13Student mobility
There are currently around one and diversified range of courses taught their home province, according to
a half million students enrolled at at centres located throughout the JLL estimates.
Spanish universities, irrespective country. However, some students
of their home region or country, elect to study in another region of Andalusia, Madrid, Catalonia, Valencia
studying Undergraduate, Master’s Spain, either to attend specialised and Castilla & Leon are the regions
and PhD courses. In addition to courses that are not offered closer to that receive the greatest number of
students enrolled at our universities, home or to attend universities with students from other parts of Spain.
every year Spain also welcomes greater prestige and recognition.
students participating in international All these regions, with the exception
exchange programmes, such as According to data issued by the of Valencia, have seen the number
Erasmus. Although not included in Spanish University Rectors Association of students from other parts of the
the aforementioned one million and (CRUE)3, 282,719 students residing in country increase, a factor that reflects
a half students, they study at Spanish Spain enrolled at public universities the strong interest of students in
universities for an average of between that were not located in their home relocating to another part of Spain.
6-12 months. province, representing 25% of the
total student body. In terms of private
institutions, this figure climbs to 28%
Enrolled students (around 45,906 students)4.
Domestic mobility
A total of around 328,700 students
Like most developed countries, the residing in Spain enrolled at
Spanish university system offers a universities that were not located in
Number of students from elsewhere in Spain by Autonomous Community
2014 - 2015
2015 - 2016
80.000
+5%
Number of students
70.000
60.000 +17%
50.000 +10%
40.000 -4% +12%
30.000
20.000
10.000
0
Andalusia Madrid Catalonia C. Valenciana Castilla & León
Source: JLL, based on the CRUE 2017 report and Ministry of Education data for 2016-2017 (Provisional data). Includes movements between
provinces located in the same Autonomous Community, as well as between Autonomous Communities
3
Latest data available: 2015-2016 academic year
4
Estimates compiled by JLL based on the CRUE 2017 report and Ministry of Education data for the 2016-2017 academic year* Provisional data
14 Student Housing in Spain | 2017Number of students (%)
studying at universities
not located in their home province
28%
Private universities
25%
Public universities
Source: JLL, based on the CRUE report and Ministry of Education data for 2016-2017. Provisional data
Student Housing in Spain | 2017 15International mobility undertaking higher education courses in campus universities has grown at a
Higher education is becoming an Spain. The latest figures are testament steady pace, increasing by 7% over the
increasingly global business, with to this: in the 2016-2017 academic year, past 8 years. Change (%) in the number
figures of international students 98,741 students enrolled at Spanish of international students enrolled in
expected to grow from 2014 figures of on-campus universities were from Undergraduate and Master's courses
4.1 million, to over 7 million by 2020, abroad, representing 7.5% of the total
reflecting a weighted average annual student body at these institutions. The largest percentage of international
growth rate of 11%. Breaking these figures down, 4.8% students are from other European
of students studying Undergraduate countries (43% of the total), followed
courses were from abroad. For Master’s by Latin America and the Caribbean.
A number of factors make Spain a very
and PhDs, the figures were even Spain has become the country
appealing destination for international
higher, standing at 20.5% and 24.3%, of choice for young wealthy Latin
students. In fact, the number of
respectively. American students. The growth of
foreign students is expected to be
even greater in coming years. students from Asia and Oceania is also
The total number of international worth pointing out. They now account
students has grown by 10.2% versus for 13% of international students and
Number of international students
the previous academic year. this figure is only expected to rise in
enrolled at Spanish universities
the future, now that Asian countries
There is undoubtedly growing interest The total number of international are the largest outbound markets of
among international students in students enrolled at Spanish on- international students globally.
Growth in the number of international students in Spain versus the previous academic year
Undergraduate Master´s PhD
+11.4% +5.2% +16.2%
Source: Ministry of Education. 2016-17 academic year. Provisional data
Change (%) in the number of international students enrolled in Undergraduate and Master's courses
CARG**: +7 %
60.000
Number of Students
50.000
40.000
30.000
20.000
10.000
0
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017*
Undergraduate Master´s
Source: Ministry of Education. 2016-17 academic year. Provisional data. ** CAGR: Compound Annual Growth Rate.
16 Student Housing in Spain | 2017Total number of international students (Undergraduate, Master’s and PhD)
at on-campus universities by place of origin
7,503 1,698
12,702
Europe
41,997 LatAm and Caribbean
Asia and Oceania
Africa
USA & Canada
34,841
Year-on-year growth (%) of international university students by nationality
Europe USA & Canada LatAm and Caribbean Africa Asia and
Oceania
12.7% 14.4% 5.7% 10.9% 14.1%
Source: Ministry of Education. Academic year 2016-17. Provisional data
It can therefore be concluded that the mobility of both domestic and
international enrolled students is on the rise at both public and private Spanish
universities year after year.
Distribution of the total number of students at public and private universities
by origin
100% 6.6% 13.5%
90%
80% 24.5%
70%
27.7%
60%
50%
40%
68.9%
30% 58.8%
20%
10%
0%
Public universities Private universities
International students
Students from other Spanish provinces
Students from the same province
Source: JLL, based on the CRUE 2017 report and Ministry of Education data for 2016-2017.
Provisional data
Student Housing in Spain | 2017 17Erasmus students Total inbound Erasmus students in Spain
The European Union celebrated 30
years of the Erasmus Programme
in 2017. In recent years, Spain has Spain
become a leader in the number of
inbound and outbound Erasmus
students, led by Universidad
de Granada and Universidad Germany
Complutense de Madrid.
Spain topped the ranking last year once
again as the preferred destination for
United Kingdom
Erasmus students, an enviable position
it has held since 2001.
In the 2015-2016 academic year, Spain
welcomed a total of 45,813 students France
through the Erasmus Programme, ahead
of Germany, the UK, France and Italy.
The number of inbound Erasmus Italy
students received by Spain has grown
at a compound annual growth rate of
4.4% since the 2007-2008 academic
0
10,000
20,000
30,000
40,000
50,000
0
10000
20000
30000
40000
50000
year until 2015-2016.
Source: European Commission, 2015-2016 academic year.
Erasmus Students and those on placements
18 Student Housing in Spain | 2017Total number of visiting Erasmus students in Spain
Number of students
CARG*: 4.4 %
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Source: European Commission. Erasmus Students and those on placements *CAGR: Compound Annual Growth Rate.
Student Residences in Spain | 2017 19Accommodation demand estimate
After conducting research into the movements of domestic and
international students enrolled at Spanish universities, as well as students
that receive grants to undertake courses in the country – such as the
Erasmus Programme –, JLL estimates that some 473,254 young people
will need student accommodation. There is also a body of students that
relocate within their same province to attend university who also need
accommodation, although exact figures in this area are harder to come by.
To meet this demand, there are currently only 93,600
purposes built student beds in Spain, which translates
into a major shortfall of 380,000 beds.
20 Student Housing in Spain | 2017Number of students
relocated outside
of their home province
Potential demand for accommodation
Total: 473,254 students relocated
328,700 98,741 45,813
Displaced Domestic International Erasmus
Students Students
Enrolled Non-enrolled
students students
Source: Own information based on Ministry of Education data, as well as from the CRUE report and the European Commission
Student Housing in Spain | 2017 21Why Spain?
As we have seen earlier, Spain has become an exceedingly attractive global
destination for international students. It is therefore worth asking why they
choose Spain from the wide array of possible destinations. There are clearly a
number of decisive factors when it comes to choosing Spain. Taken together,
these factors have successfully positioned Spanish university towns and cities
among the best locations to study.
22 Student Housing in Spain | 2017Student Housing in Spain | 2017 23
Two Spanish locations
among the Best Student Cities
Two Spanish cities are among the leading European urban
destinations for international students according to the QS Best
Student Cities 2017 ranking. The ranking takes into account factors
such as student diversity, the attractiveness of the facilities, the
affordability of the fees and business activity. Barcelona and Madrid
are ranked eighth and twelfth, respectively, among the top rated
European cities.
Best urban destinations for international students in Europe
Ranking City Ranking City Ranking City
1 Paris 6 Vienna 11 Dublin
2 London 7 Edimburgh 12 Madrid
3 Berlin 8 Barcelona 13 Milan
4 Munich 9 Manchester 14 Glasgow
5 Zurich 10 Prague 15 Lyon
Source: QS Top Universities, 2017
Spanish,
the world’s second most spoken language
Spanish is in fashion. The language is spoken by almost 572 million
people around the world and is the second most important
native tongue for a number of speakers. It is also the second most
important language in terms of international communication.
Spanish is also competing with French and Mandarin Chinese for the
second top spot as the world’s most studied language after English,
with over 21 million learners around the world. The greatest interest
in learning Spanish lies in English-speaking countries, especially the
United Kingdom, which considers it the most important language
for the future, and the United States, where it is the most studied
foreign language at all educational levels5.
5
Spanish: a living language, Instituto Cervantes, 2017.
24 Student Housing in Spain | 2017Robust
university offering
Spain has a long-standing university tradition, with a wide variety of quality
courses. The QS World University Ranking features 21 Spanish universities,
10 of which are among the 500 best institutions.
This is in addition to the post-graduate programmes in Spain, which are
held in high regard, especially in the area of business and management. The
ranking compiled by leading business daily the Financial Times features three
Spanish business schools among the European top ten: IE, IESE and ESADE.
Best business schools in Europe
2017 Ranking Business School Country
1 London Business School United Kingdom
2 HEC Paris France
3 IE Business School Spain
4 University of St Gallen Switzerland
5 Insead France
6 SDA Bocconi Italy
7 IESE Business School Spain
8 ESADE Business School Spain
9 Rotterdam School of Management Holland
10 IMD Switzerland
Source: Financial Times, 2017
Student Housing in Spain | 2017 25A benchmark
in terms of tourism
The wide array of leisure options offered by Spain makes it one of the
main inbound tourist markets in the European Union for non-Spanish
nationals, registering 294 million overnight tourist stays in 20166. Spain
is ranked third in terms of international visitor figures (75.3 million)7.
Top global tourism destinations (millions of tourists)
1# France - 82.6 M
2# United States - 75.6 M
3# Spain - 75.3 M
Source: World Bank data, 2016
Top 5
European tourist destinations 2016
Ranking Country Millions of overnight
1 Spain 294
2 Italy 199
3 France 123
4 Austria 83
5 Greece 80
Source: Eurostat, 2016
Standard
of living
Spain leads the ranking in terms of the best experience for expats. It is
also the European leader and second globally in terms of lifestyle. Most
of the foreign nationals living in Spain (56%) moved here to improve
their standard of living. This data is reflected in the opinions of expats
living in Spain, as compiled by HSBC in its Expat Explorer report.
6
Eurostat, 2016
7
World Bank data, 2016
26 Student Housing in Spain | 2017A welcoming
culture
The culture, making friends and integration are the factors highlighted
most in terms of the experience of expats living in Spain, all of which have a
bearing on the decision to move here. This data is also reflected in the HSBC
ranking, which positions Spain in second place globally and first in Europe
under the “People” category. According to the HSBC study, 73% of expats
living in Spain enjoy their cultural immersion in the country, compared to
the global average of 61%. They also stress how easy it is to integrate into
the local population (75%) and the improved social life (51%).
Top 10 countries
globally in terms
of experience
Global Ranking Ranking
Country
Experience Ranking Lifestyle People
New Zealand 1 9 1
Spain 2 1 2
Portugal 3 2 3
Singapore 4 10 4
Australia 5 4 8
Norway 6 5 11
Canada 7 8 6
Turkey 8 16 12
France 9 3 22
Austria 10 6 18
Source: Expat Explorer 2017, HSBC
Student Housing in Spain | 2017 2703. Student accommodation
28 Student Housing in Spain | 2017
StStudentGeneral outlook to compete with those looking to university or public or private body
rent long-term for their permanent own the freehold of the building or the
residence. Many of these properties land on which it is built. The actual
When it comes to looking for cannot be let on a seasonal basis and residence itself is managed by a private
accommodation, the decision is often the rents are often more expensive. operator through a management
dependent on factors like household contract or long-term lease (normally
budget, location and the quality of An alternative that has emerged for a term of between 40 and 75 years).
the services offered. When it comes to in recent years in renting a room The remaining residences are managed
choosing accommodation, students are in a private flat through platforms directly by private operators on their
faced with two main options: the first is specialising in these kinds of own land and buildings.
to turn to the private rental market and lets, such as Uniplaces. These
rent a flat on their own or with others companies provide end-to-end rental The majority of public universities
through property rental platforms; the management services, offering the offer accommodation in the vicinity of
second option is to reserve a place at tenant a comprehensive package the campus, however the facilities are
a student residence or colegio mayor and greater ease and flexibility often obsolete and in need of major
[residence offering additional cultural, when it comes to finding the right investment to refurbish them. The
academic, religious and sporting accommodation option. typical budget constraints imposed
activities], which are either run by the on the public sector open the door to
universities themselves, religious orders Lastly, student residences and student private investors, which are attracted
or private operators. halls (colegios mayores) complete by the compelling yields offered
the student accommodation offering. by these assets, coupled with the
Students turning directly to the rental Some of these work as a concession consistently more sophisticated and
market, either for their own use or to or surface right over the land – very demanding requirements of users.
flat-share with other tenants, have common in Spain –, whereby the
Student Housing in Spain | 2017 29Privately rented accommodation One of the leading student In general terms, in large cities with high data. It is worth pointing out that rising accommodation options is the private student populations, rental prices have residential rental prices have a direct rental market, aimed at those who do not grown at an exponential rate over the and positive effect on the cost of student need the same level of services, security past two years. In Madrid for example, housing, driving prices upwards. and sense of community as those offered rental levels have grown by 11% versus by student halls of residence or student 2016, while in Barcelona prices are up In parallel to this, platforms such as halls (colegios mayores). This option by 8%. The rent for a small apartment Uniplaces provide a wide variety of becomes all the more relevant given or studio has reached €812 per month accommodation options, offering the the short supply of places in student in the centre of Madrid, whereas similar possibility of renting beds, bedrooms residences, which forces many students flats in Barcelona’s L'Eixample district can or entire apartments during to seek alternative accommodation. command €830, according to Idealista academic term times. They also 30 Student Housing in Spain | 2017
verify current availability and the a system of guarantees and coverage simplifying the management of their
validity of the conditions under offer, that cannot be equalled by the direct accommodation.
giving greater peace of mind to the rental market, offering greater security
tenant. These platforms, which are for both owners and students.
predominantly used by international
students (87.5%, according to Data from Uniplaces shows that
Uniplaces), allows tenants to reserve students prefer reserving individual
accommodation from their home rooms in three-bedroom apartments
country or city in their own language, over sharing a room or leasing an
without having to physically visit the entire apartment. They also prefer
property beforehand. They also offer the tariff offered to include utilities,
Percentage change in residential rents in Madrid and Barcelona
Rental Levels
(€/sqm)
+8% YoY
20 +19% YoY 2017
18 2016
16
14
12 +13% YoY +11% YoY
10 2017
2016
8
6
4
2
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Barcelona Madrid
Source: Idealista
Student Housing in Spain | 2017 31Student accommodation
The student accommodation market installations and a wealth of technology- An ever-growing market
has undergone a significant change based features. They are also more
over recent years in response to “tech savvy”, using social media and the
the increasingly demanding and internet to search for accommodation. In terms of specific market figures,
intricate requirements of the student at 2017-year end Spain had 1,148
population. This has led to heightened A rise in the number of domestic student residences and student halls
competition between operators as and international students against (colegios mayores) offering a total
they attempt to ensure that their the limited availability of student of 93,653 beds. Student residences
accommodation stands out from the accommodation is driving the are the most prominent type of
rest, as well as to grow their businesses development of new high-quality accommodation – 963 residences
and meet new expectations. projects at competitive prices by offering 70,590 beds – versus 185
existing operators and new players student halls (colegios mayores) with
The students of today are consumers created to cover the shortfall in demand. 23,063 beds.
who have high demands when it
comes to university life, including first
class accommodation with modern
Type of student accommodation in Spain in 2017
Student Student
residences halls
Number of accommodation units: 963 Number of accommodation units: 185
Number of beds: 70,590 Number of beds: 23,063
Total
Number of accommodation units: 1,148
Number of beds: 93,653
+ 2.3% Number of beds 2016/2017
Source: DBK, 2018
32 Student Housing in Spain | 2017The bullish trend witnessed over years. However, growth has extremely concentrated insofar as the
previous years continued into 2017 been overwhelmingly positive five leading entities hold 15.5% of the
with 14 new accommodation units in the case of privately managed beds available in the market.
(all student residences) offering an accommodation not connected to
additional 2,149 beds. This growth public or private universities. By region, Madrid has the most number
is expected to persist thanks to the of accommodation bedst for students,
development of new projects estimated With regard to privately-owned accounting for 22.6% of the total
to increase capacity by 1,5% and 6,2% accommodation in Spain, many units number in Spain, followed by Barcelona,
in 2018 and 2019, respectively. are operated by small entities which with 12.4%. In fact, five new residences
manage just a single residence or with a total of 719 places were opened in
The number of beds available student hall (colegio mayor). However, Madrid in 2017, the region with the most
at accommodation owned there are also a handful of companies openings that year.
by public universities has and groups which manage several
significantly reduced over recent units. Along these lines, supply is
Growth of student accommodation in Spain
110.000
100,936*
106.000
95,031*
102.000 93,653
Number of beds
98.000
91,504
94.000 F
90,410
90.000
86.000
Source: DBK, 2018 *JLL estimate
2015 2016 2017 2018 2019
Student Housing in Spain | 2017 33Madrid
Analysis of student accommodation supply
34 Student Housing in Spain | 2017Analysis of student
accommodation supply in
Madrid
Availability
Madrid is the city which welcomes mayores) in the region of Madrid. with 18.2% of total places.
the most number of students and has More than 85% of beds are located in
the greatest supply of purpose built areas within Madrid city limits (71%), With regard to the capital’s sub-
student accommodation with 142 Alcalá de Henares (9%) and Villanueva markets 8, Ciudad Universitaria has the
residences and student halls (colegios de la Cañada (6.2%). If we break down most supply of beds (5,769), reaching
mayores) spread across the capital. the city of Madrid by district, Moncloa 32.9% of the total, closely followed
has the greatest number of places, by the city centre and periphery,
At present, there are 17,509 beds in representing 47.8% of those available comprising 31 and 30.8%, respectively.
residences and student halls (colegios in the capital. Next up is Chamberí,
Number of students per university
University Status Total no. of students
Complutense de Madrid Public 72,738
Rey Juan Carlos Public 47,476
Politécnica de Madrid Public 36,694
Autonoma de Madrid Public 29,285
Carlos III de Madrid Public 19,232
Universidad de Alcalá Public 17,983
Europea de Madrid Private 11,421
Camilo José Cela Private 9,916
San Pablo-CEU Private 8,640
Alfonso X El Sabio Private 6,854
Antonio de Nebrija Private 6,057
Pontificia Comillas Private 4,555
IE Universidad Private 4,151
Total 275,002
Source: Ministry of Education. Academic year 2016-17. Provisional data
8
Distribution of sub-markets by JLL
Student Housing in Spain | 2017 35Breakdown of number of beds by Madrid municipalities
rid
ad
M
7
10
3 2
1
4
6
5
9
1 Madrid: 12,436 6 Leganés: 307
2 Alcalá de Henares: 1,582 7 Pozuelo de Alarcón: 234
3 Villanueva de la Cañada: 1,083 8 Others*: 209
4 Villaviciosa de Odón: 696 9 Aranjuez: 157
5 Getafe: 692 10 San Lorenzo de El Escorial: 113
* ”Others” include Cercedilla, Hoyo de
Manzanares and Guadalajara.
Source: JLL
36 Student Housing in Spain | 2017Breakdown of number of beds between Madrid sub-markets
7.000
5,769
6.000 5,385
4,967
Number of beds
5.000
4.000
3.000
2.000 928
1.000
0
Ciudad Perifery City centre Cantoblanco
Universitaria (UAM)
Madrid Sub-markets
Source: JLL
Number of beds by district and municipality in the region of Madrid
Fuencarral - El Pardo
Barajas
Hortaleza
Tetu‡n
Chamart’n
Moncloa - Aravaca
San Blas - Canillejas
Chamber’ Hoyo de Manzanares
Ciudad Lineal
Salamanca
Villanueva
de la Ca–ada Alcal‡ de
Henares
Pozuelo
Madrid Coslada
Villaviciosa de Od—n
LeganŽs
Centro M—stoles Getafe Number of beds
100
Madrid Fuenlabrada
Retiro 225
350
Latina Moratalaz 500 Vic‡lvaro
Arganzuela
Madrid Sub-markets
Centre Ciudad Universitaria Periphery Universidad Autónoma
Student Housing in Spain | 2017 37Type of accommodation 13%
With regard to the type of residences 20%
and student halls (colegios mayores)
, 67% are mixed, 20% are female only
and 13% male only. Single-sex student Mixed
halls (colegios mayores) are generally Female
operated by religious orders. Male
In turn, student accommodation
managed by private sector operators is
usually mixed.
67%
Source: JLL
Number of beds
Main operators 0 500 1,000 1,500 2,000
Private operator
RESA
In Spain, student residences and Public university
student halls (colegios mayores) Nexo Residencias
Private university
are mainly operated by private U. Carlos III Madrid
Religious orders
companies, the universities
Alfonso X El Sabio
themselves or religious orders. RESA
operates the highest number of beds U. Alcala
in Madrid (1,771), representing 10.68% U. Complutense De Madrid Top 3
of the total. Around 30% of beds are Private operators
managed by the top 10 operators, Agustinos
including public universities. Europea De Madrid 1. RESA
Mi Casa Inn 2. NEXO Residencias
Agustinas Misioneras 3 . Mi Casa Inn
Source: JLL
Average prices* Average rates of accommodation managed by private operators €846 per month
If we compare student accommodation
rates in Madrid by district, the average 1.000
cost of a single room is approximately 800
€857 per month in Ciudad Universitaria,
Price per month (€)
while in the city centre, this figure 600
stands at €752 per month. Conversely, if
857 794 752 670
we solely focus on the accommodation 400
managed by private operators, the
200
average price rises considerably to
€846 per month due to the quality and 0
services they offer. Ciudad Perifery City centre Cantoblanco
Universitaria (UAM)
Madrid Sub-markets
Source: JLL
Average price* per room includes only accommodation and 10% VAT.
38 Student Housing in Spain | 2017Student Housing in Spain | 2017 39
New openings
New openings in Madrid
Mi Casa Inn Moncloa
40 Student Housing in Spain | 2017Opened recently, Mi Casa Inn Moncloa, located next to Ciudad Universitaria, has 250 beds offering optional catering at
prices ranging from €625 to 1,300 per month, as well as a gym, solarium, common rooms and shared kitchen.
Mi Casa Inn Moncloa
Number of beds: 250
Accommodation offer: Full board (optional)
Price range: €625-1,300 per month
Operator: Mi Casa Inn
Student Housing in Spain | 2017 41New developments
New developments in Madrid
Cuesta San Vicente (La Imprenta)
Collegiate Aravaca
42 Student Housing in Spain | 2017Cuesta San Vicente (La Imprenta)
The Student Hotel will open its doors in Q3 2019 with 300 beds under its hybrid model imported from the Netherlands,
merging a hotel and student accommodation offering co-working areas, a restaurant, study rooms and a gym. Prices for
students range between €1,000 and 1,200 per month.
Collegiate Aravaca
WP Carey and its partner Grupo Moraval are developing a new high-quality student residence in Aravaca. The new
residence will be operated by Collegiate, housing over 200 studio apartments and amenities such as a gym, study areas,
games room, café-bar and private dining room. It is expected to open in summer 2018 with monthly fees ranging between
€900 and €1,110.
The Student Hotel
The Student Hotel is expanding quickly the best in class and most innovative expand in the main Spanish cities and
in Spain, other European cities and student housing / co-living / co-working create 3,000 rooms in Spain in the next
further afield. It will open 300 rooms Student Hotel hospitality concept in four years
in Q3 of 2019 in this prime location in Spain. The Madrid project is in line with
the city centre of Madrid, showcasing The Student Hotel’s strategy to quickly Jules Choukroun,
Investment & Business
Development Manager,
The Student Hotel
Student Housing in Spain | 2017 43Barcelona
Analysis of student accommodation supply
44 Student Housing in Spain | 2017Analysis of student
accommodation supply
in Barcelona
Availability
Barcelona lies in second place in Eighty-eight per cent of these places can beds (5,769), reaching 34% of the total,
terms of the number of inbound be found in the city of Barcelona (65%) followed by the periphery.
students and the number of beds and Bellaterra (23%). If we break down this
available, with 77 units across the data by district, Sarrià-Les Corts has the
Catalan capital. highest number of places, representing
close to 28% of the total supply.
At present, there are 9,517 beds in
residences and student halls (colegios With regard to the sub-markets, Ciudad
mayores) in the region of Barcelona. Universitaria has the greatest supply of
Number of students per university
University Status Total no. of students
Universidad de Barcelona Public 53,422
Autónoma de Barcelona Public 37,517
Politécnica de Cataluña Public 30,245
Pompeu Fabra Public 19,156
Ramón Llull Private 15,007
Internacional de Catalunya Private 3,492
Abat Oliva Private 1,569
Total 160,408
Source: Ministry of Education. Academic year 2016-17. Provisional data
Student Housing in Spain | 2017 45Breakdown of number of beds by Municipalities within Barcelona Province
Barcelona
6
3
9
4
10
2
1
7 5
1 Barcelona: 6,227 6 Manresa: 110
2 Bellaterra. 2,193 7 Vilanova: 65
3 Terrassa: 306 8 Montgat: 50
4 Sant Cugat: 297 9 Sabadell: 50
5 Castelldefels: 187 10 Cerdanyola: 32
Source: JLL.
46 Student Housing in Spain | 2017Breakdown of number of beds between Barcelona sub-markets and the Universidad Autónoma de Barcelona campus
3,753
4.000
Number of beds
3.000
2,193
2.000
1,806
1,097
1.000 688
0
City centre Bellaterra Sarrià / Sant Other University
(UAB) Gervasi perifery quarter
Barcelona Sub-markets
Source: JLL
Number of beds by district and municipality in Barcelona
Badia del
Vallès
Terrasa
Ripollet
Sabadell Cerdanyola
del Vallès
Montcada
i Reixac
Sant Cugat
del Vallès
Santa Coloma
de Gramanet
Badalona
Horta-Guinardó Sant Adrià
de Besòs
Molins de Rei
Sarrià-Sant Gervasi Gràcia
Sant Martí
Sant Vicençe Number of beds
dels Horts
Eixample
100
Les Corts
Barcelona 225
Sant Feliu de Sant Just
Llobregat Desvern 350
Esplugues de
Llobregat 500
Santa Coloma Sants-Montjuïc
de Cervelló Sant Joan
Despí
Barcelona sub-markets
City centre Sarrià / Sant Gervasi Periphery Zona Universitaria Bellaterra
Student Housing in Spain | 2017 471% 7%
Type of accommodation
With regard to the type of residences and
student halls (colegios mayores) , the vast
majority are mixed (92%), with just 7%
Mixed
female only and 1% male only. Single-
sex student halls (colegios mayores) are Female
operated by religious orders. Male
92% Source: JLL
Number of beds
Main operators 0 500 1,000 1,500 2,000 2,500
Private operator
RESA
Once again, RESA operates the highest Public university
number of beds in Barcelona (2,245), Universidad Autonoma de Barcelona
Private university
representing close to 27% of the total Universidad de Barcelona
Religious orders
across the Catalan capital. Around
TSH
60% of beds are managed by the top 3
operators, including public universities. Residencia Sarrià
Onix
Top 3
Private operators
Erasmus
Unihabit
1. RESA
Cett 2. TSH
Instituto Hnos. de Escuelas Cristianas 3 . Residencia Sarrià
Source: JLL
Average prices*
If we compare student accommodation
rates in Barcelona by district, the average
cost of a single room is approximately
€760 per month in Sarrià-Sant Gervasi,
while in the city centre, university quarter
and periphery, such figures stand at €753, Average rates of accommodation managed by private operators: €778 per month
€674 and €529 per month, respectively.
In the town of Bellaterra, where the
Universidad Autónoma de Barcelona’s 800
main campus and a large number of 700
Price per month (€)
accommodation places can be found, the 600
average price is lower than the rest of the
500
sub-markets (€501 per month), although
400
it should be noted that all units in this 760 753 674 529 501
sub-market are owned and managed by 300
the aforementioned university. Conversely, 200
if we solely focus on the accommodation 100
managed by private operators, the average 0
Sarrià / Sant City University Other Bellaterra
price rises considerably to €778 per month
Gervasi centre quarter perifery (UAB)
due to the quality and services they offer.
Barcelona Sub-markets
Source: JLL
Average price* per room includes only accommodation and 10% VAT
48 Student Housing in Spain | 2017Student Housing in Spain | 2017 49
New openings
New openings in Barcelona
The Loft Town
50 Student Housing in Spain | 2017The Loft Town
Number of beds: 146
Accommodation offer: Full board
Price range: €750-1,540 per month
Operator: The Loft Town
Student Housing in Spain | 2017 51New developments
New developments in Barcelona
Nexo
Finestrelles, Collegiate
52 Student Housing in Spain | 2017Nexo
With two projects under development and set to open in 2019, Nexo’s commitment to the continual expansion and
improvement of high-quality student accommodation in Barcelona is more than assured. The Residencia Garbí, next to the
Sants train station, will have 370 beds, whereas the Residencia Universitaria Aleu, in the heart of the Universidad de Barcelona
campus, will house around 500 students. Both units will offer full board accommodation in addition to other amenities such
as a gym and study room.
Residencia Garbí Residencia Aleu
Finestrelles, Collegiate
A WP Carey and Temprano Capital Partners joint venture will see the 2019 delivery of a top quality student residence in
Esplugues de Llobregat, 5 minutes from the Zona Universitaria of Barcelona. The accommodation will comprise 372 studios as
well as a gymnasium with panoramic views, roof top swimming pool, cinema room, dinner party room and games room. The
property sits above the Finestrelles Sur shopping complex, currently under construction, which is due to open in 2018 and will
provide shopping and restaurants for the students on their very doorstep.
Student Housing in Spain | 2017 53Other Cities
Analysis of student accommodation supply
54 Student Housing in Spain | 2017Valencia
Availability
Valencia is third in terms of the number the areas of Benimaclet and Algirós, also appealing due to their proximity
of students welcomed to the city to as well as the city centre. The coastal to the sea.
experience university life, with 2,655 areas of Malvarrosa and Norte del
beds at present in 24 units located in Cabanyal to the north of the city are
Number of students
University Status Total no. of students
Universidad de Valencia Public 48,131
Universidad Politécnica de Valencia Public 27,983
Universidad Católica de Valencia San Vicente Mártir Private 11,120
Universidad Cardenal Herrera-CEU Private 8,406
Universidad Internacional de Valencia Private 5,099
Universidad Europea de Barcelona Private 1,451
Total 102,190
Source: Ministry of Education. Academic year 2016-17. Provisional data
Number of Number of Student
beds units residences
2,655 24 45%
Price Valencia: € 526 per month
Average price per room includes only
accommodation and 10% VAT. Student halls Student to bed ratio
(colegios mayores)
55% 38:1
Source: JLL
Student Housing in Spain | 2017 55Projects
Future projects in Valencia
Collegiate Marina Real
56 Student Housing in Spain | 2017Collegiate Marina Real New high-quality student residence developed by Princeton Investments and WP Carey, housing 350 studio apartments, a swimming pool, solarium, gym, cinema, private dining room, games room, café-bar and study room. Opening in 2019 with rates of €775 to 920 per month. Student Housing in Spain | 2017 57
Granada
Availability
Granada’s supply of student residences three campuses belonging to the city’s Fuentenueva and Campus Cartuja.
and student halls (colegios mayores) only university, Universidad Públic de There are currently 2,876 available beds
can be found in the vicinity of the Granada: Campus Centro, Campus across 34 accommodation units.
Number of students
University Status Total no. of students
Universidad de Granada Public 52,247
Source: Ministry of Education. Academic year 2016-17. Provisional data
Number of Number of Student Student halls Student to bed
beds units residences (colegios mayores) ratio
2,876 34 37% 63% 18:1
The average price* in Granada is €421 per month.
* Average price per room includes only accommodation and 10% VAT
Source: JLL
Future projects in Granada
Projects
Due to its popularity among Erasmus students and the notable disparity
between supply and demand, Granada has become an attractive university
city for domestic and international investors and developers alike.
JLL has identified several potential future developments in Granada which,
should they come to fruition, would push supply over the 2,000 beds mark.
58 Student Housing in Spain | 2017Bilbao
Availability
Bilbao’s supply is highly concentrated UPV campuses. More central areas of the beds in 12 accommodation units.
in the district of Deusto, specifically city such as the historic quarter are also
the area of Sarriko, home to one of the popular. The Basque capital has 1,182
Number of students
University Status Total no. of students
Universidad del Pais Vasco (UPV)* Public 23,401
Universidad de Deusto Private 9,374
Mondragón Unibertsitatea Private 4,639
Total 37,414
*Estimate for Campus in Bilbao, excluding Álava and Guipúzcoa
Source: Ministry of Education. Academic year 2016-17. Provisional data
Number of Number of Student Student halls Student to bed
beds units residences (colegios mayores) ratio
46%
1,182 12 54% 32:1
The average price* in Bilbao is €512 per month.
* Average price per room includes only accommodation and 10% VAT
Source: JLL
Future projects in Bilbao
Property developer and construction firm Amenábar is building a mixed-use
development comprising a shopping centre, hotel and student residence in the
heart of Bilbao city centre, next to the Engineering Faculty of UPV/EHU and San
Mamés stadium. The development will have room to house 400 students and is
expected to open in 2020.
Student Housing in Spain | 2017 59Seville
Availability
Seville is another preferred accommodation supply is of poor total, Seville has 28 accommodation
destination and lies fourth in quality and disjointed, albeit the vast units offering 3,053 beds.
terms of the number of students majority of residences are located in
welcomed to the city. However, the the most central part of the city. In
Number of students
University Status Total no. of students
Universidad de Sevilla (US) Public 60,862
Universidad Pablo de Olavide Public 11,467
Universidad Loyola de Andalucía Public 2,344
Universidad Internacional de Andalucía (UNIA) Public 272
Total 74,945
Source: Ministry of Education. Academic year 2016-17. Provisional data
Number of Number Student Student halls Student to
beds of units residences (colegios mayores) bed ratio
3,053 28 80% 20% 25:1
The average price* in Seville is €499 per month.
* Average price per room includes only accommodation and 10% VAT
Source: JLL
Future projects in Seville
Projects
While Corestate is heading towards the completion of its first student
residence in Spain – in the heart of Madrid’s Ciudad Universitaria area –,
the developer has also acquired a plot of land next to the Sánchez-Pijuán
stadium in Seville where it plans to build a new 413-bed residence expected
to open in 2020 with the support of its own operator, YOUNIQ. The residence
will be divided into single rooms in “cluster” format, as well as housing a gym,
swimming pool, solarium, bicycle shed and gardens.
60 Student
StudentHousing
Housingin Spain | 2017
inSpainStudent Housing in Spain | 2017 61
New developments The growth of the student accommodation market in Spain has triggered the development of new projects and attracted foreign investment, with the clear aim of transforming the landscape in the medium term. 62 Student Housing in Spain | 2017
Number of accommodation units and beds in Spain’s main student cities
Number of residences
Number of beds
Bilbao
Gijón 1 400
1 250
Pamplona
1 200
Barcelona
6 1,810*
Salamanca
1 400
Madrid
9 2,554*
Valencia
2 792
Sevilla
1 400*
Granada
Málaga 4 862*
2 877
* Data on the number of beds at certain units is not available.
** Only projects at a more advanced stage are included, i.e. those in possession of a construction permit
Student Housing in Spain | 2017 6304. Investment in student accommodation
64 Housing in Spain | 2017
StudentResidents
ResidencStudentInvestment in student accommodation to single asset acquisitions and new attractive returns and the development
increased more than eleven-fold last developments, bringing new student opportunities presented by the supply-
year from €50 million in 2016 to €560 beds to a market driven by an ever more demand mismatch for modern student
million in 2017. In fact, the 1120% hike demanding consumer. Nonetheless, accommodation.
was mainly driven by two deal portfolios, consolidation amongst operators and
Erasmus and Rio, operated by RESA and the trading of operational portfolios can According to JLL Research, current
Nexo respectively. The two companies be expected over the medium-term. pipeline developments in top University
have a combined 11,000 beds in Spain cities around Spain will add an additional
(approximately 12% of the market total). Furthermore, the sector is experiencing 10,000 beds to the existing market stock
an influx of new players attracted by by 2020.
The main focus in the Spanish student the Spanish student housing market’s
housing market for 2018 has turned compelling metrics, comparatively
During 2018 we expect to see the PEUAT, as well as a better
increased activity in the development understanding of the aforementioned
of new student accommodation markets and their underlying metrics.
schemes, not only in Madrid and
Barcelona, but also in other locations, These new developments will be
particularly in Valencia, Granada, driven primarily by capital seeking
Malaga and Seville. This is driven development exposure to reach high
by a lack of development sites target returns, as well as the major
in the capital and the restrictive established operators and their Nick Wride
urban planning regime brought expansion plans. Head of Living &
into legislation in Barcelona with Alternatives
Student Housing in Spain | 2017 65Investment in Student Accommodation and Land in 2017 (€M)
30
560
Students accomodation Land
Source: JLL
66 Student Housing in Spain | 2017Yield levels
Prime yields in each sector as at Q4 2017
Retail High Street: 3.15% LC Hotels: 4.50%
Offices: 3.75% MC Hotels: 5.00%
Housing: 3.75% Logistics: 5.50%
Retail Shopping Centres: 4.25% PBSA (Student accommodation): 5.25%
Prime student housing yields for Spain have sharpened by 50 bps from Q4 2016, yet they still offer more attractive returns than
all other major real estate sectors other than logistics.
Source: JLL
Major deals
Land
1.Imprenta (Cuesta San Vicente 27, Madrid) *
a. Buyer: The Student Hotel
b. 300-bed student residence and hotel, as well as a co-working area.
c. Seller: Threesixty Developments
*Transaction advised by JLL
2.Avenida Comandante Franco 8, Madrid
a. Buyer: Urbania
b. Land for public use, suitable for the development of a 262-bed student residence of up to 4,650 sqm.
c. Seller: Private
Student Housing in Spain | 2017 67You can also read
