Student residences: Still a good investment in Portugal?

With the continuous growth in the number of university students in Portugal, many investors are wondering whether the student residence market still offers good opportunities. This type of investment has attracted attention due to constant demand and the growing internationalization of higher education. But is it still a profitable bet? Let's explore the advantages of this investment and understand why it remains an excellent option.

1. Constant and growing demand

The student residence market in Portugal benefits from solid and constant demand. With a significant increase in the number of international students, combined with the lack of university-run accommodation on offer, the demand for private housing has risen exponentially. Cities such as Lisbon, Porto, Coimbra and

Braga are seeing demand outstripping supply, which keeps occupancy rates high and favors profitability for investors.
In addition, higher education in Portugal has been in great demand from foreign students, thanks to its quality and relatively affordable cost of living. The influx of Erasmus students from all over the world fuels this demand, especially in the most popular university cities.

2. Long-term stability and profitability

Investing in student residences is generally a safe bet in the long term. Unlike other types of rental, which can be subject to seasonality or economic variations, the demand for student accommodation tends to be stable. Each academic year, a new generation of students seeks accommodation, ensuring a consistent occupancy rate.

What's more, profitability is high, as the price per room in student residences can be more lucrative than renting an apartment outright. With rental contracts often signed for fixed periods, such as the academic year, landlords guarantee prolonged occupancy without major interruptions.

3. Investment flexibility and diversification

Another point in favor of student residences is the flexibility they offer investors. You don't need to buy a whole building to make a profit in this market. You can choose to buy smaller apartments in areas close to universities and adapt your offer to renting out rooms. This model allows you to diversify your investment and, at the same time, dilute the risk by increasing the number of tenants rather than relying on a single tenant.

4. Institutional support and focus on higher education

Portugal has positioned itself as a destination of excellence in higher education, with a growing focus on attracting international students. The government and universities have promoted initiatives to facilitate the integration of foreign students, which increases the need for housing solutions. This creates a favorable environment for the continued growth of this market, offering good prospects of appreciation for investors who opt for student residences.

Investing in student residences in Portugal continues to be an excellent opportunity for those looking for stability, high profitability and a constantly growing market. The continuing demand for accommodation from both national and international students makes this segment an attractive and secure long-term option.
If you are looking for a secure investment opportunity with a high potential return, student residences could be the right choice. At IR Group, we offer expert advice on making the best choice in the real estate market.