Student housing is India's next real estate hotspot, says report - here's why

India's higher education landscape is undergoing a quiet transformation, and with it, a new opportunity is emerging for real estate investors.As millions more students enrol in colleges, international universities establish campuses in India, and studying abroad becomes increasingly expensive, demand for purpose-built student accommodation (PBSA) is rising rapidly.Backed by favourable demographics, expanding higher education and growing student mobility, India is fast emerging as one of the most promising student housing markets in the Asia-Pacific region.According to a Knight Frank report, investments in the Asia-Pacific (APAC) living sector have reached $21 billion, nearly tripling over the past decade, with India well-positioned to benefit from the sector's long-term growth.The report noted that APAC living-sector investments increased significantly between 2016 and 2025, driven by changing demographics and evolving housing needs. India, in particular, stands to gain from its expanding higher education ecosystem and supportive policy reforms.Despite a 5.9% decline in overall real estate fundraising, investments in the APAC living sector rose 12% in 2025. Although investment activity in the sector declined nearly 10% year-on-year during the first half of 2026, Knight Frank expects transactions to gather pace in the coming months.The report attributed the growing demand for student housing to stricter visa regulations and rising costs of overseas education, prompting more students to pursue higher studies within India. At the same time, the entry of leading international universities through offshore campuses is expected to further boost demand for professionally managed student accommodation.India's demographic profile also supports this trend. According to the report, around 155 million Indians fall in the 18-23 age group, including 53 million students enrolled in higher education. That number is projected to exceed 70 million by 2035, creating a significant increase in demand for quality student housing.Education-related migration is another key driver. The report estimates that 15-17% of interstate migration is linked to education, potentially generating housing demand for more than 12 million students by 2035.Commenting on the outlook, Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said India's favourable demographics, expanding higher education ecosystem and rising student mobility are driving sustained demand for professionally managed student housing.He added that these trends are expected to attract greater institutional investment and accelerate the development of high-quality, purpose-built student accommodation across the country.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.