ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • RBI extends implementation of card tokenisation norms by 3 months; deadline extended till 30 September
  • EXCLUSIVE: 'Noida International Airport at Jewar to be jewel in crown of Indian aviation sector' - Know what all is coming up at
  • D-Street Corner: Market gains 2.7% in highly volatile week, investors richer by 5.5 lakh cr; what should investors do on Monday?
  • Sebi allows UPI payment option to invest in public issues of REITs, InvITs with effect from 1 August
  • Netflix lays off 450 employees in two months—Here's what's bothering OTT giant
Read in App
Business News » India News

Investments in student accommodation in India reaches $10 crore in 2018: Knight Frank

According to the Global Student Property 2019 Report by Knight Frank, around $10 crore was invested in the Indian PBSA market in the year 2018. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Investments in student accommodation in India reaches $10 crore in 2018: Knight Frank
Knight Frank estimates the current potential demand for PBSA in the country to be approximately $5000 crore. Photo: Pixabay

On account of demand for Purpose Built Student Accommodation (PBSA) across India totaling more than 8 million bed spaces – a figure which is expected to grow at a rate of around 8 per cent Y-o-Y to reach 13 million beds by 2025, the investors have started to take the PBSA sector as a good investment option in India. According to the Global Student Property 2019 Report by Knight Frank, around $10 crore was invested into the Indian PBSA market in the year 2018. However, Knight Frank estimates the current potential demand for PBSA in the country to be approximately $5000 crore.

Speaking on the report findings James Pullan, Global Head of Student Property, Knight Frank said, “Purpose Built Student Accommodation (PBSA) has become a global asset class, underpinned by a continentally mobile student population and an increased recognition across the world of the importance of higher education.  The structural undersupply story is transparent with students attending universities across the world struggling to secure housing in what is a global housing crisis.  PBSA represents an opportunity for institutions to invest in an asset class that has demonstrated rental growth every year since the economic downturn.” 

Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The Indian student population base is growing consistently; this growth coupled with a push from the government to promote more enrolment for higher education is a perfect recipe for student accommodation market to flourish. The forecast is highly promising and is likely to offer investment opportunities in this alternative asset class for domestic and international investors.”

Commenting upon the demand-supply gap Saurabh Mehrotra National Director of Advisory Services, Knight Frank India said, “Currently the bulk of the student housing demand is serviced by the unorganised sector comprising of rented accommodations and private hostels. These properties are often below student expectations. The demand-supply gap coupled with strong fundamentals of the sector has led to an increase in investor interest to develop and operate well-located, high-quality purpose-built accommodation. Knight Frank estimates that there is currently a potential to deliver 6 million PBSA bed spaces on greenfield land located in close proximity to universities, while a further 2 million can be delivered through retrofitting and augmentation of existing on-campus hostels.” 

Speaking on the investment trends in the student accommodation Rohit Pateria, Founder, Placio said, "There are over 35 million tertiary students in India, with no significant purpose-built student accommodation (PBSA) operators in the market. Over 10 million of these students relocate to another city within India. This created a huge demand for student housing in India, opening opportunities for all stakeholders including Real Estate owners, Universities and Students. " He said that off late, the investment has also started coming in towards building a purpose built student housing, both on campus and off campus. Universities are the biggest landowner, most suitable for Student Housing. This new segment of real estate is an ever-growing one and the investment made in it is definitely going to give good results. 

As per the report, there are two major factors contributing to reaching this target. India’s GDP growth has averaged more than 7% per year for the last decade and it is now the sixth largest in the world. This rapid growth has fuelled the emergence of a burgeoning middle-class population – estimated to be growing at a rate of 25 million each year. Subsequently, this has resulted in increasing demand from businesses for more highly educated workers who hold degree level qualifications. The second factor that will underpin the growth of the Higher Education sector in India relates to demographics. India has the youngest population in the world, with some 18% of the 1.3 billion-strong population aged between 15 and 24. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Real EstateKnight Frank India
Written By: Asit Manohar
Updated: Tue, Jun 11, 2019
07:13 am
New Delhi, ZeeBiz WebDesk
RELATED NEWS
Wealth Guide: Real Estate - Here's how investing in realty sector could help you retire early | Expert’s suggestions Wealth Guide: Real Estate - Here's how investing in realty sector could help you retire early | Expert’s suggestions
Wealth Guide: How rising interest rates will impact home buyer's affordability, explains Knight Frank India's this report Wealth Guide: How rising interest rates will impact home buyer's affordability, explains Knight Frank India's this report
RBI MPC: No material impact on housing sector, despite repo rate hike as affordability still high: Experts RBI MPC: No material impact on housing sector, despite repo rate hike as affordability still high: Experts
Will increase in cost of raw materials impact real estate prices? Expert decodes Will increase in cost of raw materials impact real estate prices? Expert decodes
Wealth Guide: Real Estate - How to reduce realty sector investment risks? Expert gives these suggestions Wealth Guide: Real Estate - How to reduce realty sector investment risks? Expert gives these suggestions

LATEST NEWS

How has technology changed the face of investing and what lies ahead? Analyst decodes

RBI exploring options to ensure customer safety dealing with PPIs issued by non-bank entities

Indian markets should start its journey upward by October – know why? Analyst lists out 4 reasons

Net profits of manufacturing companies surged by over 50% in FY22, says RBI

This Mukul Agrawal textile stock may grow over 52% on strong export outlook and government initiatives

Government extends levy of GST compensation cess till March 2026, finance ministry issues notification

Two-thirds of MSME loan originations concentrated in Maharashtra, Tamil Nadu, and Delhi: Credit information company data

US one step away from historic gun law reforms

iOS users can now securely save their passwords in Chrome

Auto major Ford extends production at Tamil Nadu plant till July-end

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV