Student Housing Crisis: Rents Soar 9% in Lisbon and Porto Amid Shortage

Rising Rents for Students in Lisbon and Porto

As the new academic year begins in mid-September, displaced students in Lisbon and Porto are facing a 9% increase in room rents, according to Cushman & Wakefield (C&W). This rise is driven by a severe shortage of student accommodation in these cities and the ongoing housing crisis in Portugal, which is limiting market potential. This rent hike follows an average increase of over 11% since 2022, as highlighted in a study by the consultancy firm.

A major factor pushing up rents in the student housing segment is the general scarcity of housing. The lack of available homes has become so critical that the limited market of apartments traditionally rented and shared by students is now being taken over by families unable to afford their own homes, explains Ana Gomes, head of research at C&W. Students are forced to turn to university residences, but the supply in this area is also insufficient.

In the last academic year, the supply of student accommodation increased by 1,500 beds across Lisbon and Porto, representing an 8.5% growth in total stock, the study notes. Most of these are the result of private investments. Rents in these residences are not affordable for all; according to C&W, the monthly cost for a studio in such projects ranges from €650 to €1,500, depending on location and services provided.

In public residences, prices for single rooms range from €253 to €413, shared rooms cost between €170 and €354 per bed, and studios are priced from €588 to €775. However, the study reveals that state accommodations tend to be in secondary cities, while in Lisbon and Porto, private offerings already exceed the number of public beds.

The report argues that the deficit in available beds is due to slow and complex licensing processes, a shortage of suitable land for such developments, and the suspension or delay of some public projects announced since 2020.

C&W estimates that even with all planned public and private projects, the bed-to-student ratio in Lisbon and Porto will remain below 10%, far from the European average of 12%. In summary, the imbalance between supply and demand is expected to persist in the coming years, worsening housing costs.

Currently, there are 16,603 beds available in public residences nationwide, according to the National Plan for Higher Education Accommodation (PNAES) website. Recall that there are about 120,000 displaced students, with nearly 45,000 being underprivileged.

As previously reported, the latest update from PNAES, available on its website, notes that 90 public university residence projects are underway, encompassing 14,655 beds. These include new constructions, adaptations of existing buildings into student residences, renovations of old accommodations, and acquisitions of properties for this purpose. The PNAES update published on July 30 also reveals that an additional 2,064 beds are in the adjudication phase.