India's student housing sector is set for a boom, with the number of student relocations predicted to rise from 11 million to 31 million by 2036. Poor conditions in hostels and rising rents have sparked increased demand for improved student accommodation, says a report by Colliers India. Notable sector players are gearing up to meet this burgeoning demand. The surge in enrolment for higher education, expected to exceed 92 million by 2036, underscores vast untapped investment potential in the Purpose Built Student Accommodation (PBSA) market.
India's student housing sector is on the cusp of a boom, with demand for quality accommodation skyrocketing. According to a new study by Colliers India, the sector, once fragmented and loosely regulated, is rapidly becoming an attractive investment opportunity as the need for improved living conditions for students intensifies.
Yearly, thousands of students relocate to metropolitan areas in India for advanced studies. However, poor state of hostels and pricey rentals have escalated the necessity for improved student housing, particularly in cities renowned as educational centres.
Currently, the volume of student movement within India is approximately 11 million, with projections indicating a rise to 31 million by 2036. Despite the existence of 7.5 million student beds in on-campus lodgings nationwide, the supply falls dramatically short of both present and future projected demands, presenting a ripe opportunity for sector growth.
Currently, several key players are expanding their footprint in this burgeoning sector. Stanza Living provides 70,000 beds across diverse cities, and Housr Co-Living operates in five cities with plans to venture into Delhi and Kota. Your Space plans to expand its present offering of 5,500 beds to 20,000 beds by 2024 in major education centres, and Olive Living, managed by Embassy Group, intends to increase its current 2,500 beds to 22,500 in the coming years.
The post-pandemic period has seen student housing rentals grow by 10-15% annually, reflecting the escalating demand for quality student housing. With estimates showing that student enrolment in higher education will surpass 92 million by 2036, the sector holds immense potential for both domestic and foreign investors. The Purpose Built Student Accommodation (PBSA) market anticipates the entrance of new and possibly international players.
As India's higher education sector continues to expand, the demand for quality student housing is set to triple by 2036. Despite present challenges, the student housing sector holds untapped potential for growth and investment. The emergence of new players and potential global investors in the PBSA market will likely transform the landscape of student accommodations in India, improving the living conditions for millions of students.
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