Lisbon Student Rental Prices Hit €500 Average Amidst Declining University Applications
The latest report from Portugal's Student Housing Observatory has revealed a stark financial reality for the nearly 50,000 students awaiting university placement results this weekend. The national average cost for a student room has climbed to €415 per month, with the Lisbon district commanding the highest prices at an average of €500. This escalating accommodation crisis is being directly linked to a notable decline in higher education applicants, which have fallen to just 49,595 this year, a sharp drop of over 9,000 from the previous year and a return to 2018 levels.
The statistical data was compiled through a nationwide survey of online rental listings and data from university accommodation services during the early summer months. The Observatory's methodology involves tracking the advertised prices for single rooms in shared apartments in major university cities, providing a reliable snapshot of the market that prospective students and their families face. The report confirms a consistent upward trend in rental prices over the past five years, with Lisbon and Porto experiencing the most significant increases.
This year's applicant pool is the smallest since 2020, when over 62,000 students applied during the first phase. The Ministry of Education has confirmed the decrease, even as the number of available places in public universities has slightly increased to over 55,000. This paradox suggests that non-academic factors, primarily economic, are heavily influencing the decision to pursue higher education. The high cost of living away from home is cited in the report as a primary deterrent for students from outside the major metropolitan areas.
The geographic breakdown shows a clear concentration of the housing affordability issue. While Lisbon leads at €500, Porto follows closely behind, with other university cities like Coimbra and Braga also seeing significant price hikes. The report details that in some central Lisbon neighborhoods popular with students, such as Arroios and Alameda, prices can often exceed the €500 average, pushing students further into the periphery and increasing their transportation costs and commute times.
The analysis compares the current situation with previous years, highlighting that the rate of rental price inflation for student rooms has outpaced general inflation. This is attributed to a combination of factors, including a shortage of dedicated student residences, the conversion of traditional rental properties into more lucrative short-term tourist lets (Alojamento Local), and increased demand from a growing international student population.
Industry experts have weighed in on the findings. A spokesperson for the National Association of Real Estate Agents (APEMIP) commented that the market is responding to a classic supply and demand imbalance. 'There is a structural deficit in affordable student housing in Portugal's main cities. While new private student residences are being built, they often cater to the higher end of the market, leaving a significant gap for students on a tighter budget.'
The government has acknowledged the issue, with the Secretary of State for Higher Education recently stating that addressing student housing is a priority. However, large-scale public projects take time to implement, leaving the market to dictate terms in the interim. The report from the Student Housing Observatory serves as a critical data point for policymakers as they formulate their response.
The timeline for a market correction remains uncertain. The Observatory plans to release its next update at the start of the second semester, which will provide further data on whether prices stabilize or continue their upward trajectory. For now, the thousands of students who will receive their placement offers on Sunday face not only an academic challenge but a significant financial one as well.
[Stay informed on Lisbon property market developments at realestate-lisbon.com.]
