Research published by Savills revealed student properties in the main Spanish university cities typically have 100 per cent occupancy during the academic year.
In addition, the firm noted there has been little new supply added to the market in the past three years, despite the number of people studying for degrees increasing by nearly 20 per cent in the same period.
Head of Savills student investment Marcus Roberts explained many investors are searching for opportunities away from conventional Spanish real estate assets. He commented: "With sustained demand and student registrations consistently rising year-on-year, student accommodation could be seen as such an alternative."
There are more than 70 universities in Spain, of which around 50 are public and the remainder are run privately. Madrid, Valencia and Barcelona are the cities with the highest concentration of such establishments, which may make them a good target for investors interested in student property.