Demand-supply gap in student housing presents immense opportunities for investors and operators within the co-living sector. While co-living facilities are targeted at both students and migrant working professionals alike, student housing is more nuanced and is an important sub-segment within the co-living sector.
Many select co-living operators have ventured into Purpose-Built Student Accommodation (PBSA) by partnering with leading educational institutions. Although PBSA facilities, owned and managed directly by the operator, allow greater control over the asset, they involve substantial capital investment.
Currently, approximately 11% of India’s population is in the 18-23 years age group. Although, enrollment in higher education remains low compared to developed countries and is indicated by a Gross Enrollment Ratio (GER) of 28.4% at the national level (2021-2022), enrollments in absolute terms remain huge. The number of students enrolled in higher education courses, including graduate and postgraduate programs, rose from 30.2 million in FY 2012-13 to 43.3 million in FY 2021-22, witnessing a CAGR of 3.7% as per Colliers.
A significant proportion of higher education students enrolled in India are out-station students who require accommodation facilities near their institutions. As per All India Survey on Higher Education (AISHE), during FY2021-22, accommodation facilities provided by colleges & universities could cater to approximately 4 million students, merely 35-40% of the demand and resulting in a significant demand-supply mismatch.
As of 2025, the demand for student-living accommodation is estimated to be around 12 million. The acute demand and supply gap necessitates the need for quality, affordable accommodation, especially as more students migrate to cities for higher education.
Not surprisingly, the segment presents immense opportunities for student housing-focused operators to foray into the market with professionally managed, student-centric housing solutions that can alleviate supply-side constraints and support the evolving needs of India’s student population.
