Student housing in India set to touch 31 million by 2036

V Nagarajan

Student housing is considered as an attractive investment proposition amongst the alternative real estate (realty) asset classes in India.

A recent study conducted by Colliers India reflects that the student housing sector is emerging to be a sought-after asset class, given the rising demand for quality student accommodation.

Up until recently, the sector was unorganised and unregulated even though thousands of students migrate to the metro cities each year to pursue higher education.

The poor conditions of campus hostels and PG homes along with scaling rentals gave birth to the need for quality student housing across the country, especially in education hubs that have a high footfall of students each year.

The student relocation within the country currently stands at 11 million and is expected to touch 31 million by 2036.

Further, there are only 7.5 million student beds at on-campus accommodations pan-India, not enough to serve the current demand and far from being able to meet the projected future demand. There is immense potential for growth given this high demand-supply gap in the sector.

“There will be immense requirements for shared student accommodation in the coming years due to new education policies by the government, innovative technologies, and the in-migration of students to pursue higher education,” says Swapnil Anil, Executive Director & Head, Advisory Services at Colliers India.

A shared space with excellent amenities, same age-group community, convenience in commute, and assistance in day-to-day activities - are the requirements of our young generation. Pre-pandemic, many start-ups ventured into the purpose-built student accommodation sector, and very few have survived to become seasoned players with large portfolios across the country,” added Swapnil Anil.

At present, there are a few players in the sector who have a growing presence in the country. Stanza Living, Housr Co-Living, Your Space and Olive Living are just to mention a few of them.

Post pandemic, student housing rentals have been steadily rising by 10-15 per cent year-over-year (YoY), reaffirming the scaling demand for quality student homes. With student enrollment in higher education projected to cross 92 million by 2036, there is untapped opportunities for investors and developers and tremendous scope for the sector’s growth.

It is likely that the market will see the emergence of new players and perhaps even global investors in the Purpose Built Student Accommodation (PBSA) market.

According to Savills, purpose-built student accommodation has emerged as a growing segment within the student housing market in India. PBSA is designed specifically for students and offers a range of modern amenities and facilities. The demand for student housing in India emanates from international students as well as internal migration within the country. There are currently 41 million students in higher education in India,” says Savills survey.

Savills estimates indicate that the top three cities of Mumbai, Bengaluru and Delhi-NCR have an approximately 0.4 million beds in institutional hostels and Purpose Built Student Accommodation formats.

The significant volume of students in India, coupled with limited supply, is a key reason why student housing is considered an attractive investment proposition amongst the alternative real estate asset classes.

At a time when demand for student accommodation facilities is rising along with a focus on providing enhanced livability, the role of private operators assumes great significance.

These private players provide better amenities, bridge the supply deficit, deploy technological means to create a seamless community-driven living experience and help create a community-feel and experience for the user.

I have a brother in India who says I have no right over my deceased father’s property since I am married. My father has not left any Will. How to resolve the situation? Nirupama, Sharjah.

In the absence of Will, the ancestral property will pass on to the legal heirs by virtue of their birth. Women have the same right as men over ancestral property under the Hindu Succession (Amendment) Act. As the legal heir, you have the same right and your marital status does not alter the status to claim to this property.

I am due to enter into a joint development with a developer but the developer insists that the agreement should be registered with the concerned authorities. Is it necessary? Please advise. M Alexander, Dubai.

It is not clear where the land is located because it depends on the state government’s prescribed norms in a particular state.

For instance, in Tamil Nadu, while revenue sharing agreements need not be registered, area sharing agreement with the developer for the joint development of property needs to be registered now.