Summary:

India's student housing industry is expected to grow rapidly, reaching Rs. 6,822 crore (US$ 780.5 million) by 2030, with a 6.6% CAGR from 2025. In 2021-22, 43.3 million students enrolled in higher education, with over 75% living away from home. On-campus hostels accommodate only 20% of students, creating a housing gap. This has increased demand for off-campus accommodations, where private operators provide security, meals, Wi-Fi, and transportation.

Student housing offers higher annual rental returns than traditional real estate, ranging from 8% to 18%. Despite challenges such as financing issues and a lack of organized players, analysts expect private equity investments to drive growth. Tax incentives and public-private partnerships can help developers overcome barriers. With rising demand and strong returns, student housing is emerging as a significant asset class in India's real estate sector.

Source: IBEF

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