Student Housing Sector: A Billion Dollar Market

Bangalore: Student housing sector is gaining popularity in India and is likely to grow more in future. According to property consultancy firm Jones Lang LaSalle (JLL), globally, this sector is worth around $200 billion. This latest report has shown the increasing number of Asian students who prefer to study outside their native land, reports Khushboo Narayan of Live Mint.

Anuj Puri, Chairman and Country Head, JLL India stated that “Student housing is one of the most vibrant Indian real estate markets in the foreseeable future.” He further added “Dense student populations that exist around prominent colleges positively affect the demand for residential spaces as well as restaurants and small retail spaces. As such, educational institutions lend value to a location,” reports Live Mint.

For international students, Asia has improved on their market share to 52 percent in 2009 from 48 percent in 2004. Moreover, China, India and South Korea are the top-three source markets in the world followed by France and Germany.

“Strong economic growth in the key Asian markets has fuelled higher education enrolments globally. Over the past decade, countries like China, India and Vietnam have experienced rapid growth in the wealthier middle class, which has spurred demand for higher education and better housing options in destination countries.” said Philip Hillman, lead director, Student Housing and Higher Education, JLL in a media release, reports Live Mint.

The number of students who are studying abroad is likely to increase by 263 million in 2025 from about 165 million as of today’s date, said the report.

Generally, the  student housing sector ownership has been controlled by developer-operators but now, equity funds, pension funds, investment managers and sovereign wealth funds to name a few are gradually moving into the market.

Besides, the corporate education sector is planning to develop educational institution space of around 10 million square feet in the next few years. “The demand for the right kind of student housing that such a scenario presents can well be imagined,” added Puri, reports Live Mint.