Demand for high-quality accommodation coupled with international level amenities reaches an all-time high 

What is society without one of its main pillars - education. While universities in India have seen a rise in the number of students, the number of students able to access hostel facilities are extremely disproportionate, with the latter accounting for a paltry 20% of the total volume. 

In such a scenario, students are forced to rely on private accommodation around their campus. However, such facilities do not align with the taste and preference of students. This void is filled by Purpose Built Student Accommodations (PBSAs), which have pioneered a new wave in the Indian real estate sector by addressing this high-potential market.

Here are some of the trends in the Indian student housing market: 

En-route to attract international students - It was announced in the 2019 Union Budget, the plan to attract almost 200,000 students from all over the world to study at Indian universities as a part of the Government's "Study in India" initiative. This has led to a tremendous upswing in the number of private players in the Indian student accommodation sector to cater to the demand of international students who are accustomed to high-quality student housing. The demand for high-quality accommodation coupled with international level amenities will soon touch an all-time high.

Amenities galore - PBSAs offer students a variety of amenities that would make any 5-star hotel manager proud. These include fully equipped gyms, on-site cafes, heated swimming pools, cinemas, courtyards, on-site laundry facilities, daily clean-ups, study rooms and much more. Such facilities are being offered to students with the intention of creating a stress-free environment where learning is nurtured. Students can focus better on their studies as well as have the means to unwind after hectic study hours. 

The emergence of new players - It is almost axiomatic that a new sector attracts new market players. With universities popping up in several tier-2 and tier-3 cities, the demand for student accommodation has never been this emphatic. Supported by institutional investment from domestic parties, new market players are jostling to grab as much market share as they can in a market that has the potential to become a key contributor to India's GDP. 

Unreal potential - While 90% of the student housing market is still unorganised, this sector is expected to see investments to the tune of USD 700 million by 2023.  (according to a report released by CBRE, a US-based real estate consultancy firm). The fact that every year there has been an increase in the number of students who travel to different cities for education bodes well for the student housing market. In India itself, enrollment of students has increased by almost 13% in the last five years. The numbers are quite staggering as the total enrollment of students in higher education courses comes up to 36 million all over the country. 

Demand for private space - The traditional setting of a hostel includes one room that is shared by at least 2 or 3 students. This model might have worked earlier, but for the current crop of millennials and GenZ students, the criterion of having a place of solitude is not met by hostels. Instead, they prefer staying at private living en-suits, studio rooms or even private rooms in shared apartments. Furthermore, PBSAs have a host of communal facilities like social gatherings, communal areas, cinemas, cafes etc. that give students an opportunity to interact with each other and possibly build their network. 


Government of India. (2013). Twelfth Five Year Plan (2012 – 2017) , Social Sectors – Volume III. Planning Commission. New Delhi: SAGE Publications India Pvt Ltd.

International Monetary Fund. (2019, October). World Economic Outlook.

Ministry of Human Resource Development. (2019). All India Survey on Higher Education. Department of Higher Education, New Delhi.

Value Champion. (n.d.). Average Consumer Spending in India

Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, Government of India. (2019, September). FDI Policy. 

EY. (2019). Real Estate Investments – Trends and Outlook. New Delhi: EY. Retrieved from 

Global Property Guide. (2006, June). Global Property Guide.

JLL. (2018). Global Real Estate Transparency Index. 

Knight Frank. (2019, May). Global Student Property Report 2019. 

Legal Desk. (2016). Rental Agreement.

Ministry of Housing and Urban Affairs. (2019). Draft Model Tenancy Act. 

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