Purpose-Built Student Accommodation (PBSA) has emerged as the most desirable asset class for investors targeting the Spanish market, according to the recent Living Investor Survey conducted by Cushman & Wakefield. This survey indicates that PBSA surpasses other sectors, such as Build to Rent, affordable housing, and co-living, in terms of acquisition interest projected over the next one to three years, highlighting its ongoing appeal to institutional capital.
Investor Sentiment and Market Trends
While the appetite for PBSA remains robust, the survey also forecasts that this sector will contribute significantly to transaction volumes in 2026. Excluding those investors who have no plans to sell, the findings suggest that PBSA could represent approximately 27% of potential disposals within the living sector. This figure positions PBSA just behind Build to Rent, indicating a trend towards portfolio recycling rather than any decline in confidence in this asset class.
The Current Landscape
The results of the survey reveal that many living assets remain tightly held, with over half of the respondents (56%) expressing no intentions to sell during 2026. This suggests that investors seeking operational PBSA stock may face fierce competition for a relatively limited pool of opportunities. The survey reflects broader confidence in Spain’s living market, which continues to benefit from strong demographic demand, a constrained housing supply, and increasing institutional participation.
Investment Opportunities in Regional Markets
In 2025, Spain attracted more than €2.7 billion in investments across various living sectors, excluding mergers and acquisitions. Key drivers of this investor interest include stable returns and favourable demographic trends. While Madrid and Barcelona remain the primary markets for living investments, there is a notable shift as investors broaden their search to include regional cities such as Valencia, Málaga, and Seville. This expansion signifies a growing institutional appetite for living strategies that extend beyond Spain’s two largest metropolitan markets.