Institutional investment in the APAC living sector has hit USD 21 billion, with a Knight Frank report identifying India’s purpose-built student accommodation as a key growth area due to demographics and rising demand in higher education.
Institutional investment in the Asia-Pacific (APAC) living sector has nearly tripled over the past decade to reach USD 21 billion, with India’s purpose-built student accommodation (PBSA) sector emerging as a key long-term growth opportunity, according to a Knight Frank report.
Drivers for Growth in Indian Student Housing
The report said investment in the APAC living sector increased significantly between 2016 and 2025, driven by growing investor interest in alternative residential real estate. It added that India’s favourable demographics, expanding higher education sector and supportive policy reforms make it well placed to benefit from this trend.
India has around 155 million people in the 18-23 age group, including nearly 53 million students enrolled in higher education. With the government targeting a Gross Enrolment Ratio (GER) of 50 per cent, the tertiary student population is expected to cross 70 million by 2035, creating strong demand for purpose-built student housing.
The report said stricter visa rules and rising costs of studying abroad are prompting more students to pursue higher education within India. It added that the entry of leading international universities through offshore campuses is also expected to increase demand for professionally managed student accommodation.
According to Knight Frank, education accounts for around 15-17 per cent of interstate migration, resulting in potential accommodation demand for more than 12 million students by 2035.
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said India’s strong demographics, growing higher education ecosystem and increasing student mobility are driving sustained demand for professionally managed student housing. He said this is expected to attract greater institutional investment and support the development of high-quality purpose-built accommodation.
APAC Investment Landscape and Outlook
The report further said institutional capital allocated to the APAC living sector rose 12 per cent in 2025 despite a 5.9 per cent decline in overall real estate fundraising. Although investments in the living sector fell nearly 10 per cent year-on-year during the first half of 2026, Knight Frank expects transaction activity to pick up in the remaining months of the year.
It added that demographic trends, rising mobility and increasing demand for professionally managed housing will continue to support institutional investment in segments such as co-living, senior housing and student accommodation. (ANI)
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