Student Accommodation Market in India – Market Study

Industry Overview:

Introduction:

The student accommodation market in India is experiencing significant growth, driven by factors like increased enrollment, urbanization, and a preference for quality accommodations. The market is evolving with the emergence of purpose-built accommodations and co-living spaces, offering various amenities and services. Pricing strategies vary based on location, amenities, and room types, with a focus on providing a premium experience for students.

Growth Trends:

1. Student housing operators, including your space, Zolostays, and Curated Living, are planning ambitious expansions to achieve over 50% growth in FY24.
2. Curated Living aims to increase its bed capacity by 2.5 times by end-FY25, Zolo Scholar plans to double its portfolio by end-FY24, and your-space aims to increase beds from 15,000 to 25,000 by the end of the next fiscal year.

Analysis of Key Market Trends:

Pricing Strategy:
1. Companies in this market charge range from Rs 10,000 for twin-sharing in Indore to Rs 30,000 in Mumbai’s Vile Parle.
2. Companies like your-space position themselves as offering a premium service compared to traditional local options such as hostels and paying guest accommodations.
Factors Influencing Pricing:
1. Location (e.g., Indore vs. Mumbai’s Vile Parle).
2. Amenities provided (Wi-Fi, security, food, laundry, housekeeping).
3. Room types (twin-sharing, single occupancy).

Factors Driving the Surge:

1. Increase in higher education enrollment in India.
2. Urbanization leads to more students migrating to educational hubs.
3. Preference for quality and organized accommodations due to safety, security, value-added services, community, and networking.

Amenities and Services Offered:

1. Companies provide Wi-Fi, food, laundry, housekeeping, and security at a 10% premium to traditional options.
2. Curated Living offers 24/7 security, CCTV surveillance, and community events.
3. The article mentions amenities such as monthly food committees, celebrations of festivals, and socializing options for students.

Type Of Student Accommodations:

• Purpose-built student accommodations
• Co-living spaces
• Apartments
• Shared housing

Demographics and Target Audience:

• Urbanization Drive: Rapid urban growth increases demand for student accommodation in cities.
• Investment Magnet: High rental income potential attracts significant investments from institutions and developers.
• Amenities Matter: Students seek accommodations with modern amenities and safety features.
• Institutional Influence: institutional investors play a key role in shaping the student accommodation market.

• Global Student Surge: 40,000+ international students from 164 countries enrolled in Indian colleges.
• Study in India” Impact: Government campaign aims to attract 2 million students by 2026, driving accommodation demand.
• PBSA Trend: Increased preference for Purpose Built Student Accommodation and Group Housing near universities.

Players in this market

• OYO Life
• Your Space
• NestAway
• Stanza Living
• CoHo
• Open Space
• Zolo Stays

Market Concentration

Supply and demand dynamics

Current Demand:

Estimated 70-80% of migrating students need to find their own accommodation. Colliers India study predicts student relocation to touch 31.1 million by 2035-36.

Current Supply:

Approximately 7.5 million beds are available currently, falling far short of the current demand.

Market Potential:

• Educational campuses can only accommodate 20-30% of migrating students.
• Collier’s study projects a CAGR of 7.5% in student relocation for higher education.
• Higher demand was observed in big metros and emerging educational hubs like Kota, Vadodara, and Nagpur.
• Zolo Scholar plans to double its portfolio by the end of FY24.
• Curated Living aims to increase bed capacity by 2.5 times by the end of FY25.

Impact of External Factors:

Post-COVID-19 Boom: Student housing rentals post-pandemic show a growth rate of 10-15%.Occupancy rate is approximate 90% after covid-19.