Student residences in Valencia are becoming a new magnet for foreign investors, more than tourist apartments and “build to let” schemes, due to a severe shortage of student housing.
Valencia, despite not appearing on any lists of top performing university cities, remains one of the most popular places in the world to study due to its climate and low cost of living. A highly regarded Erasmus programme destination, the city is finding it increasingly difficult to cope with the influx of students from both Spain and abroad.
Due to a severe shortage of student housing, the city presented another big investment opportunity. Building student residences in Valencia is currently one of the most profitable options for anyone looking for a good return on investment.
There are several projects in the works at the moment. One of them, on Calle Guillem de Castro, is being promoted by the British company Global Student Accommodation (GSA), and when completed, will provide 170 new rooms and 232 beds in the heart of Valencia Old Town.
The investment group, which specialises in developing student residences, purchased a plot in Guillem de Castro in 2018, but only recently received building permission from the Valencian town hall.
The project is spread across three plots on Guillem de Castro street, numbers 99, 101, and 103, with a total area of 793 square metres. The future complex is designed as three separate buildings that are functionally and internally connected. The project budget is approximately 4.6 million euros.
The buildings will have seven floors, including the attic, according to the design. The new residence will have 171 rooms and 232 beds, divided as follows: 15 rooms (22 beds) in Guillem de Castro 99, 42 rooms (57 beds) in Guillem de Castro 101, and 114 rooms (133 beds) in Guillem de Castro 103. The majority of the rooms will be singles, but there will also be doubles.
This establishment will be difficult to distinguish from traditional tourist apartments because the rooms will be rented on a daily, weekly, or longer basis. There are no large common spaces such as dining rooms or kitchens in the plan to maximise the number of rooms. However, the common areas will retain a touch of luxury. The complex will include a movie theatre, a gym in the semi-basement, a solarium pool, and a parking lot in the basement.
The best news is that, once completed, it will cover the last abandoned plot on Calle Guillem de Castro, significantly improving the street’s appearance.
However, more student residences in Valencia are set to hit the market in the near future. Another British company, Amro Real Estate, is promoting a new development near the Guillem de Castro complex: a large student residence with 170 rooms and 232 beds. The complex is scheduled to open in September 2022 and is situated on a 5,000 square metre plot on Palleter Street.
The new student hotel will have a rooftop pool, a gym, and a 24-hour concierge service, among other amenities. One more, smaller, residence is planned for Plaza Rojas Clemente, and another is planned to be built soon in Malvarrosa. Most of the new projects are still in the planning stages, but given Valencia’s severe shortage of student housing, it is clear that they will soon see the light of day.
According to one study, Valencia has a huge mismatch between supply and demand, with a student-to-bed ratio of 25, one of the highest in the Spanish market. That is why, in Valencia, students mostly rent rooms in private homes. It is also the reason why so many investors find it extremely profitable to build student residences in Valencia?
Currently, Valencia has 3,906 places in residences and colleges, 15% more than in the previous year. Around 80% of the beds are in the city, followed by Alboraya (11%) and Burjassot (5%).
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