Industry of Providing Students with Comfortable Housing Facility in India

Introduction

In India, the industry of providing students with comfortable housing facilities as consideration didn't exist. Traditionally, parents preferred having their children stay in the hostels within the colleges, as they considered it a better and safer option. However, due to the large number of students, the number of available rooms was insufficient, leading to a first-come, first-served basis approach. It was observed that the facilities offered by the colleges in the hostels often didn't make students feel comfortable, causing them to miss their homes (Sharma, 2022).

Challenges in Student Housing

When students could not find hostel rooms available for them, they started looking for rooms outside the college but nearby. However, this did not solve the problem, as the rooms available in residential buildings were not cheap and lacked the facilities required by students (Singh, 2021). Presently, India has approximately 34 million students pursuing higher education, which is a significant number. Due to the shortage of hostel rooms, the demand for student housing rose rapidly. This rising demand was seen as an opportunity for people to enter a market where real estate was in a declining stage.

Growth of the Student Housing Industry

The businesses already operating in this industry are pleased with the growth trajectory and anticipate expanding their current operations by nearly 100% year over year in the coming 4-5 years (Kumar & Patel, 2023). This industry is becoming beneficial for India, while in other countries, it is already well established. The USA was the first where this industry became an asset, followed by the UK, which set the standard for this industry. The student housing market in India is improving and focuses on three tiers of services:

• Basic: Wi-Fi, food, and laundry.
• Medium: Housekeeping staff and air-conditioned rooms.
• Premium: Transportation, events for socializing with students, and intercom facilities.

Today, students seek an environment where they can feel at home at an affordable price. They look for accommodations with common areas for socializing, discussions, study during exam times, and even entertainment activities for relaxation. Student housing should differ from traditional hostels and offer numerous facilities along with a homely atmosphere at a lower cost (Jain, 2022). Initially, companies targeted states such as Pune and Bengaluru due to their large student populations. The property prices in Mumbai and Delhi were very high, which is why companies avoided these cities at the initial stage. This market requires significant investment.

Policy Recommendations and Future Potential

The National Education Policy recommends that the amount spent on education rise to 6% of the total GDP compared to 3.5% in previous years. This suggests that increased investment can improve education quality along with facilities and housing (Government of India, 2023). India has the potential to become an educational hub in Southeast Asia if it focuses on enhancing the experiences of students aspiring for better careers. This industry holds immense potential in India. The policy highlights how private companies can help raise resources and shape the sector.

Universities operating independently are encouraged to establish a presence in India to contribute to improving education quality and providing various choices for students. Changes in this policy over time have been made to encourage growth, although many students still face uncertainty when moving to different cities for college, which often lack adequate housing facilities for every student (Rao & Verma, 2023). The problem lies in the limited availability of hostel rooms compared to the high number of students desiring them, leading to increased demand for student housing.

Conclusion

In conclusion, the student housing industry in India is evolving and presents numerous opportunities for growth. Addressing the current challenges and implementing supportive policies can significantly enhance the educational landscape in India, making it a more attractive destination for students across the region (Chopra, 2023).