India's student housing market is expected to expand as demand rises

India’s student housing market is expected to grow significantly, reaching approximately Rs. 6,822 crore (US$ 780.5 million) by 2030, with a compound annual growth rate (CAGR) of 6.6% from 2025 onward. As of 2021-22, student enrollment in higher education stood at 43.3 million, with over 75% of students living away from their hometowns. However, on-campus hostels can accommodate only 20% of the total student population, creating a gap in housing. This has increased reliance on off-campus accommodations, with private operators offering security, food, Wi-Fi, and transportation services. 

The student housing sector presents attractive rental yields, ranging from 8% to 18% per annum, much higher than traditional real estate. Despite challenges such as financing issues and lack of organized players, experts believe private equity investments will drive growth in this market. Developers could also benefit from tax incentives and public-private partnerships to overcome hurdles and further expand the sector. With rising demand and lucrative returns, the student housing market is becoming an important asset class in India’s real estate industry. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.