Student Housing – A New Segment Taking On The Indian Housing Market
As enrollment in higher education rises every year by almost 9% in India, the country is experiencing a real “Great Migration”. More and more students are migrating from their home city for education but there is very little accommodation for this migrating population. Thus a new real estate category of Student Housing is emerging.
The “Paying Guest” or the PG market has been mostly dominated by the unorganized sector. These PGs are often highly un-regulated and do not offer any standardized services that the students may need. Students often prefer co-living spaces without the hassle of searching or renting a flat, students do not want to worry about food or housekeeping thus co-living spaces are emerging as an ideal solution for popular collage cities like Bengaluru, Pune, Chennai & Delhi which are struggling to cope with this rising student population.
State Of Student Housing In Major Cities In India
Delhi, Bengaluru, Pune and many other cities have world class universities and attract a large influx of students every year but the cost of living is often so high that most housing spaces are co-living with double or triple occupancy rates. The existing collage hostels can only accommodate roughly 15-20% of all students, thus students often resort to PG’s and other such places.
For the students the definition of a good place to stay depends on a few crucial factors like distance from their collage, transport, food and safety. All of this in a student’s budget
The Future For Student Housing
Although student housing is a relatively new phenomena in India, this category has already been well established in Europe and The US. Major investors are looking to expand and organize student accommodation. Huge potential and demand for more than 10 million beds will arise across major cities in the coming years.
Major players are already looking into various models to fulfill this demand like university tie ups, independent houses, custom built residences & fully managed service to name a few. Tech enabled services like Zamindari.in, Housing, etc are also looking to reduce or eliminate the role of real estate brokers and bring the majority of the inventory under their wing.