As universities in India are unable to fully cater to the rising demand for student accommodation, the market has opened up a private investment potential of $50 billion, says a latest Global Student Property 2019 report by Knight Frank.
The potential is fuelled by the demand for purpose-built student accommodation (PBSA), which is set to grow by 8 per cent annually from the current 8 million beds to 13 million by 2025, the global real estate consulting firm’s report shows. The demand for PBSA bed spaces in the US stands at 2.6 million beds.
The investment potential of $50 billion in PBSA comes at a time when India has seen barely $100 million worth of investment in the sector in 2018. Moreover, compared to this, the US has a PBSA market already valued at $65 billion.
With only 20 per cent of the demand being met by university operated supply, the report estimates a potential to deliver 6 million beds on green field and another 2 million on brown field land.