New Launch - India Real Estate Report 2026.
India's purpose-built student accommodation (PBSA) sector is emerging as one of the most attractive long-term real estate investment opportunities in the Asia-Pacific region, supported by strong demographics, rising higher education enrolment and favourable policy reforms, according to a report by Knight Frank.
The property consultancy's report, Asia-Pacific Horizon 2026 From Niche to Core: Why APAC Living Sectors are Entering the Mainstream, said investment in the Asia-Pacific living sector nearly tripled over the past decade, reaching $21 billion between 2016 and 2025.
Demand drivers: demographics, visas and offshore campuses
For India, the report highlighted a strong structural advantage due to its young population and expanding higher education ecosystem.
India currently has around 155 million people aged 18-23, including 53 million tertiary students, and with the government aiming to raise the Gross Enrolment Ratio in higher education to 50 per cent, the tertiary student population is projected to exceed 70 million by 2035.
- Tighter visa regulations and rising overseas education costs are encouraging more students to study within India
- Offshore campuses by leading international universities are expected to boost demand for managed accommodation
- Education already accounts for an estimated 15-17% of interstate migration
- Potential demand pool of more than 12 million students requiring accommodation by 2035
Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said strong demographic fundamentals, a rapidly expanding higher education ecosystem and increasing student mobility are creating sustained demand for professionally managed student accommodation, adding that this is expected to accelerate institutional participation and drive higher-quality, purpose-built assets.
Also Read: MP Housing Assistance Scheme for ST Students Explained
APAC living sector investment hits $21 billion
According to the report, institutional investment targeting living-sector assets across Asia-Pacific increased by 12 per cent in 2025, even as overall real estate fundraising declined by 5.9 per cent during the year.
Asia-Pacific, home to nearly 60 per cent of the world's population, continues to attract institutional capital into rental housing, student accommodation, co-living and senior housing.
While investment activity in the living sector softened by nearly 10 per cent year-on-year in the first half of 2026, Knight Frank expects transaction momentum to improve during the remainder of the year.
Investors are increasingly adopting strategies such as adaptive reuse of existing properties, owner-operator partnerships and integrated residential platforms spanning multiple living formats.
Regional markets progressing at different stages
The report noted that Asia-Pacific markets are at different stages of maturity.
Singapore's co-living market could support 35,000-40,000 keys by 2028, while in Hong Kong, international student enrolment is expected to create a shortage of around 137,000 student beds by the 2028-29 academic year, prompting the conversion of hotels and office buildings into student accommodation.
Australia's build-to-rent sector is also expanding rapidly, with over 16,000 completed apartments, another 12,200 under construction and 25,900 approved for development.
Christine Li, Head of Research, Knight Frank Asia-Pacific, said living sectors are increasingly shaped by converging occupier demand across multifamily, co-living and student accommodation, creating opportunities for investors to serve multiple tenant segments through integrated platforms, with adaptive reuse offering shorter delivery timelines and lower execution risk than new development.
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