The student housing segment in India will see an investment of USD 700 million by the year 2023, a report said on Thursday.
The student co-living segment is witnessing a rapid growth across all the major markets in the country and is expected to witness a growth of 36 per cent between 2019 to 2023, the report by realty consultant CBRE and the Student Accommodation Provider Association of India (SAPFI) said.
"The student housing or co-living space is expected to witness an investment worth USD 700 million and an addition of 0.6 million beds by 2023 across the country," the report titled 'The Herald of a New Chapter: Student Accommodation in India' which was released on Thursday said.
Currently, on an average, only one hostel bed is available to six students enrolled for higher education in the country, which poses an opportunity for investors in this nascent market, it said.
"Additionally, there are numerous Tier II markets with significant student population. Tapping the gap in segment, the top players in student housing or co-living space offered a cumulative stock of more than 250,000 beds as of August 2019."
Student enrolments in the country have increased from 32.3 million in 2013-14 to 36.64 million in 2017-18.
"The government is targeting a gross enrolment ratio (GER) of 30 per cent by 2020-21, which will result in a further increase in number of students enrolled for higher education," the report said.
There is a change in buying trends from ownership to rentals and cost sharing. These days students go for fully furnished rental options, it added.
Increased mobility among students and growing number of private higher education institutions has led to the emergence of new educational hubs in the country, Anshuman Magazine, chairman and CEO, India, South East Asia, Middle East and Africa, CBRE said at the event.
Larger states such as Uttar Pradesh, Gujarat, Maharashtra, Karnataka, Rajasthan, Madhya Pradesh, Tamil Nadu and Andhra Pradesh account for a major share in colleges across the country, he said, adding most of these states have witnessed a steady pace of student enrolment in the last few years.
Consequently, cities such as Bengaluru, Jaipur, Hyderabad, Pune, Nagpur and Mumbai housing prominent educational institutions have emerged as educational hubs, he added.
"Some challenges faced by the student accommodation industry in India is maintaining the affordability quotient, as the rental housing market in India remains unorganised and opaque, quality and trust issues are the top challenges that both landlords and tenants face," it said.
Also, as the number of female students constitutes more than 47 per cent of the total student enrolments in India, it is imperative that student housing accomodations tick the boxes on safety, security and service, the report said.
The Student Accommodation Provider Association of India (SAPFI) is an organisation of student accommodation providers, managers and related service providers.
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