Decoding Student Accommodation as an emerging asset class

Real Estate investments can be in different forms, residential, commercial or co-working etc. Off late, developers and builders have been working hard on coming up with innovative products which ensure decent ROI and assure good rentals.

One of the most lucrative asset class that has come up recently is hostel spaces. Fully furnished, these come with a range of facilities aiming students and working professionals. This segment of the population has a very high probability of regular and secured rentals which makes a lot of sense for the investors.

There was a time when most of the student housing was arranged in campuses itself. However, the trend is changing and now a majority of students prefer to live off-campus and arrange living spaces on their own.
But the supply for this segment has not been able to keep with demand. The concept to develop something specific for student population is still at a nascent stage. Most of the private accommodation is provided by unorganized players.

Higher Education in India has shown a stupendous growth in the past few years becoming the third largest education system in the World. However, universities prefer to allocate more funds to academic infrastructure than housing units. This has opened up a huge investment opportunity for organized private investors to offer quality accommodation to students. These kinds of investments usually carry small ticket size owing to nature of the property size in demand which has a positive effect on is overall ROI.

By 2020 about 40 million students would be enrolled in higher education in India which would need a huge capex on educational institutions. This makes clear the rising demand of quality student accommodation giving investors an opportunity to add a valuable asset in their investment portfolio.

Orizzonte Bunk House
The Bunk House, located in Noida, NCR is one such project that focuses on investment in hostel accommodation. The project comes with a three tier security system and parking facilities. A 200 sq. feet hostel apartment comes complete with a bed, wardrobe, mirror, bathroom fittings, study table & chair and modern light fittings. Square Care, the property management arm of Square Yards is offering assured rentals of INR 6000 p.m. for 24 months.

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