Report

The India Student Accommodation Market is expected to register a CAGR of greater than 5% during the forecast period.

The India student accommodation market is witnessing remarkable growth, fueled by a surge in student enrollments, increased migration for higher education, and a growing preference for professionally managed housing. With over 40 million students currently enrolled in higher education, the demand for quality student housing in India far exceeds the available supply-especially in educational hubs such as Delhi, Bangalore, Pune, Mumbai, and Hyderabad. Traditionally dominated by hostels and PG accommodations, the India student accommodation industry is now undergoing a paradigm shift towards purpose-built student accommodation (PBSA), which offers improved safety, premium amenities, and community-driven living experiences.

Following the COVID-19 pandemic, the India student accommodation market saw a strong resurgence. The lifting of travel restrictions and revival of social activities have supported a consistent 10-15% annual growth in student housing rentals. According to recent India student accommodation market analysis, this momentum is expected to continue, with student enrollment in higher education projected to reach 92 million by 2036. This growth trajectory presents significant opportunities for both domestic and international investors, who are now actively exploring this alternative asset class.

The India student accommodation market report highlights a shifting investor mindset, driven by changes in the macroeconomic landscape and the widening gap between demand and supply for student housing. As a result, many are pivoting from traditional real estate investments towards student accommodation, attracted by its cost-effectiveness, high occupancy potential, and recurring revenue streams. Although independent student accommodation is still a relatively new concept in India, its emphasis on convenience, safety, and proximity to academic institutions has made it an increasingly attractive choice. Beyond providing shelter, these accommodations play a crucial role in shaping a more connected, secure, and community-oriented student lifestyle.

India Student Accommodation Market Trends

Urbanization Helping to Grow the Market

Urbanization is playing a pivotal role in driving the growth of the India student accommodation market, as increasing numbers of students migrate from tier-2 and rural areas to urban centers in pursuit of quality higher education. With India's urban population expected to reach 600 million by 2030, cities like Delhi, Mumbai, Bangalore, Pune, and Hyderabad-home to the country's top educational institutions-are witnessing a sharp rise in student inflows.

As a result, the India student accommodation market size in metro and tier-1 cities is expanding rapidly, supported by the shortage of on-campus hostel infrastructure. Universities and colleges in densely populated cities face land constraints, leading to a growing dependence on off-campus housing. This gap has catalyzed the growth of purpose-built student accommodation (PBSA), which is emerging as a dominant segment in the India student accommodation industry due to its superior amenities, safety features, and emphasis on community living.

In terms of segment performance, PBSAs are expected to hold a significant India student accommodation market share, especially in cities experiencing large-scale infrastructure upgrades and urban planning initiatives like smart city development. This shift is further supported by India student accommodation market analysis, which identifies PBSA as a key driver of market expansion in urban regions.

Rising investor interest, both domestic and international, is also highlighted in several recent India student accommodation market reports, with companies such as Stanza Living, Your-Space, and OxfordCaps scaling operations to meet growing urban demand. These players are leveraging urbanization trends to deliver modern, tech-enabled housing that aligns with students' evolving expectations for convenience, digital connectivity, and lifestyle experiences.

Higher Education Enrolment Booming the Market

The booming higher education enrolment is a significant catalyst driving the growth of the India student accommodation market. With more than 40 million students currently enrolled in higher education institutions and the National Education Policy (NEP) 2020 aiming for a Gross Enrolment Ratio (GER) of 50% by 2035, the demand for quality student housing continues to surge. Cities like Delhi, Bangalore, Pune, Mumbai, and Hyderabad have emerged as the key educational hubs in the India student accommodation industry, where the gap between demand and supply for organized housing is most pronounced.

In metropolitan areas like Delhi and Bangalore, the India student accommodation market size is projected to expand steadily, fueled by growing student migration and the limited availability of on-campus facilities. According to a recent India student accommodation market report, these regions are expected to witness one of the highest adoption rates for purpose-built student accommodation (PBSA), due to its modern facilities, safety features, and strong community-driven living environment.

As traditional PGs and college hostels fall short in catering to the evolving expectations of Gen Z students, professionally managed accommodation providers are capitalizing on this opportunity. Major players such as Stanza Living, Your-Space, and OxfordCaps are investing heavily in infrastructure across high-demand areas, contributing to the rising India student accommodation market share for PBSA.

Furthermore, the India student accommodation market analysis indicates that hybrid education models, the proliferation of private universities, and international academic collaborations are further intensifying the need for flexible and tech-enabled housing solutions. With the PBSA segment expected to grow at a CAGR of over 10%, student enrolment growth will remain a key pillar supporting the long-term expansion of the India student accommodation industry, particularly across India's tier-1 cities.

India Student Accommodation Industry Overview

The report covers major players operating in the Indian student accommodation market. In terms of market share, Currently, there are several operators in the sector, all of which are expanding their presence in India. However, with a rising influx of students and a growing education sector, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping into tie-ups with universities. Some major players are OYO Life, NestAway, Zolo Stays, Stanza Living, CoHo, etc.

Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support