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'Student Housing' is becoming a big name in Indian real estate space

'Student Housing' Is Becoming A Big Name In Indian Real Estate Space

What is student housing?
In advanced markets, student housing is a known and significant real estate segment. In India, it was not as important an asset class as it is in USA or UK, until now. As per a report published by JLL India, the demand for student housing is seeing quick growth in India and many real estate firms are leveraging the opportunity in this segment to strengthen their product portfolio and improve profitability in an otherwise slow-moving business.

Scope of student housing
In advanced markets, student housing is a known and significant real estate segment. In India, it was not as important an asset class as it is in USA or UK, until now. As per a report published by JLL India, the demand for student housing is seeing quick growth in India and many real estate firms are leveraging the opportunity in this segment to strengthen their product portfolio and improve profitability in an otherwise slow-moving business.

The education sector in India is growing rapidly. With the increasing number of students enrolling for higher education and migrating to educational hubs such as Bengaluru, Pune, Hyderabad, Chennai, it’s obvious that a sizeable market exists where an estimated percentage of only 15-20 students can be accommodated in a city like Pune as of today.

Kerala-based Asset Homes is among India’s biggest 3rd party student housing property management companies with big plans of expanding in Karnataka and Telangana. They have over 118,500 beds under management at current date. Bengaluru-based Brigade Group also has ambitious plans.

Image courtesy: Proposed student housing project for IIT Gandhinagar. 34,286 sq.m – total area – By HCP Design, Planning and Management Pvt. Ltd.)

Why student housing is getting bigger?
The main reason of this raised demand is high enrollment rate and lack of suitable supply when it comes to hostels or student dormitories. Most of the students can’t afford the typical paying guest accommodations which are more suitable for entry-level professionals.

Private accommodation owners are known to be unreasonably unkind to the students for more than one reason. These reasons are primarily creating demand for student housing. This creates huge scope for developers to go ahead and invest in this segment to meet the demand for student housing in the country.

The today and tomorrow

Student housing is largely undersupplied in major markets and has the potential of growing at a great rate in coming years. Hence in India this segment has immense scope to be developed as an asset class for developers.

This segment is moving towards a positive direction, similar to what malls were at one point in time. Developments of Mall and other retail centers was an unorganized sector which has now successfully transformed into profitable asset class. An outrageous chronic number of years

According to Suresh Hari, secretary, CREDAI Bengaluru, with more and more international students coming to India for higher studies, the concept of dedicated students’ hostel is the next big bet for developers.

Authored by 9amstories.com Editorial


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