#InternationalStudentsDay: How Education Is Pushing India's Real Estate Market
India is emerging as a global educational hub and a home to an increasing population of domestic and international students. The country has a student population of over 300 million and over the past few years, the number of foreign students enrolling in Indian institutions has been on a rise. Apparently, this has resulted in increasing student mobility from all states. Cities that top the list of promising educational hotspots are Delhi & NCR, Mumbai, Pune, Kota, Jaipur, Nagpur, Chennai, Bangalore, Hyderabad and Kolkata. Besides, Tier-II and Tier-III cities, including Lucknow, Patna and even Ludhiana, also attract a fair share of students to institutes like Indian Institutes of Technology (IIT's) and Indian Institutes of Management (IIM's) and medical colleges.
The magnitude of students' influx is so high that HEIs (Higher Educational Institutes) are unable to provide sufficient accommodation options. This has in turn given a boost to rental housing markets in various cities. Until recently, the population of outstation student relied mainly on housing options offered by unorganised players of the realty market. Gradually, student housing segment is beginning to evolve into a lucrative investment area.
Here is a quick highlight of this emerging sub-sector of the Indian real estate industry.
Major growth drivers
Emergence of private universities
Many private universities have come up across the country which has augmented student enrolments and in turn, created a healthy demand for quality housing.
Boom on global scale
Student housing market has evolved as a full-fledged domain and thus it has started to gain acceptance and recognition among investors in the Indian market as well.
Scope of university accommodation
Regular HEIs face limitations in providing housing solutions for the entire student population which forces them to look for off-campus options including paying guest facilities nearby.
Inefficiency of unorganised sector
Due to mismanagement, lack of adequate infrastructure and higher cost of living, unorganised housing options like PGs and private hostels are unable to meet the students' needs. Thus, reputed real estate firms are collaborating with several universities to create quality living spaces for the student community.
High preference for rental units
Students, who typically depend on their families for finance, have a higher preference for rental properties. This has bolstered the rental real estate market in the country in the guise of student housing.
Some attractive housing options
On-Campus: Some top-ranked educational institutions have in-house housing facilities.
Rented room or apartment: Rented apartments, furnished or unfurnished, are available in plenty and have become a popular choice among the student fraternity.
Shared apartments or PG accommodations: Youngsters also find PG homes as a suitable living option. PG accommodations are equipped with all basic facilities including kitchen and Wi-Fi connectivity.