Barcelona ranked best city in Europe for real estate investment in student accommodations

With a large student population and rental yields of 5%, Barcelona is consolidating its position as the best university city in Europe for real estate investment in student accommodations, ahead of Madrid, Brussels, Milan and Lyon. This is according to Compare the Market, a British price comparison site using data from Numbeo, and a report compiled by real estate asset manager Patrizia that analysed data from over 180 university cities in 21 European countries.

On the one hand, the Compare the Market report ranks the best cities in the United States, Europe and Australia for this type of investment based on four weighted variables: rental yield, student population, rental prices and general interest in student property investment.  In this regard, Barcelona tops the European ranking, driven by the third-highest rental yield (5%) and a large student population, with more than 140,000 university students.

The report also notes that Barcelona is home to eight universities, and that university cities represent a potentially attractive destination for real estate investment due to the permanent demand for student housing.

On the other hand, Patrizia highlights the Catalan capital’s academic prestige and international projection, along with a consolidated yet underdeveloped real estate market, which contribute to making Barcelona a highly competitive location for investment.

It also concludes that student accommodations are an essential strategic component of institutional real estate investments, and that this type of asset offers higher returns and has greater potential for growth than conventional residential housing.