The Indian cities and the need of a formalized student housing sector
Recently, India has witnessed more and more people moving to metro cities for jobs and education, especially millennials. In few years, besides the traditional forms of rented accommodations such as paying guests, hostels and shared apartments, new concepts have emerged such as co-living and student living, and they offer better and organized services and facilities.
Several companies have started offering student living, focussing on the requirements of the migrant students. There are several start-ups which are providing accommodation to the migrant students in the big cities such as Mumbai, Delhi, NCR, Bangalore, Pune, Hyderabad and a lot more. One of the biggest hospitality company in the world, OYO reportedly is entering the student housing soon. OYO recently launched a long-term rental housing business – Oyo Life targeting millennials, young professionals and students.
Moreover, India is a developing country with over 135 crore people and a considerable percentage of youngsters. The urban parts of the county due to its better lifestyle, education and employment has been attracting the rural population. More than 34 million students are enrolled in the Indian universities and institutes, and the numbers are rising quickly. Although the student housing sector in India is at the embryonic stage, there are multiple factors which will drive the growth of the segment in the near future.
Only a few Indian institutions and universities provide residential facilities to the students. The other major reason is the influx of students to the metro cities for competitive exams such as civil services, SSC etc. There is no other option for such students except to live in private hostels and lodges. These private facilities don’t offer modern facilities such as laundry service or Wi-Fi and are often of poor quality. Although a significant number of students prefer living in PGs or shared apartments, it can be a difficult task.
The cost is another critical factor, organized students’ organization charge almost 1/3rd less than the private hostel/PG charge. The charges may vary from city to city, and location in the town. Besides, several studies suggest that student housing has the potential to yield more returns than the commercial sector. At present, there are a handful of organized firms which are offering student housing. The facilities such firms provide are superior to the other options available in the market. Although it might take a few years to flourish the business of the organized student housing, the future is bright.