Lisbon's Housing Supply Gets a Boost: 224-Room Student Residence Completed in Lumiar
A new, modern student residence has been completed in Alta de Lisboa, delivering 224 fully-equipped rooms and signaling a continued push in the development of Purpose-Built Student Accommodation (PBSA) in the capital. This €10 million Smart Studios project, built by CARI Construtores, offers a glimpse into the future of student living and its impact on the broader Lisbon real estate market for foreign investors.
What Foreign Investors Need to KnowThis is just the first of three major Smart Studios projects by CARI, with a total of nearly 800 new rooms and a combined investment of €40 million set to come online in Lisbon (Lumiar, Areeiro, and Ajuda) over the next two years. The use of prefabricated modules is accelerating construction, meaning this new supply will enter the market relatively quickly. For buy-to-let investors, this trend is critical. 'The growth of high-quality PBSA with amenities like gyms and cinemas creates new competition for private landlords who have traditionally catered to students,' notes a local property manager. 'It may require a strategy shift for those holding older, less-equipped rental units.'
Actionable Steps for Today's Buyer- Analyze Location: Investors should be aware of the locations of these new large-scale residences (Lumiar, Areeiro, Ajuda) and assess the potential impact on their nearby rental properties.
- Upgrade Amenities: To compete with new builds, consider upgrading existing rental properties with modern amenities and high-speed internet to attract discerning tenants.
- Target Different Niches: Consider marketing properties to non-student demographics, such as young professionals or couples, who may have different housing priorities.
- Invest in Management: Professional property management can enhance the tenant experience and help private rentals compete with the service level of large PBSA complexes.
The rise of PBSA is reshaping Lisbon's rental market, and savvy investors must adapt to the changing dynamics. Explore opportunities with realestate-lisbon.com.
