Student Housing Market
Chapter 3: Student Housing Market
The Indian student housing and co-living industry is a booming sector with a projected value of USD 25 billion, boasting an impressive estimated capacity of 2.5 crore beds and a remarkable year-on-year growth rate of 6.7%.
Driving Factors of the Market
- Increasing Student Population: With India boasting the second-largest student population pursuing post-secondary education, the college-going population is expected to reach a staggering 140 million by 2030. This significant increase in student numbers creates a substantial demand for suitable student housing options.
- Better Standard of Living: Today's students seek a higher quality of life, with a strong emphasis on strong and supportive communities and improved living conditions. Gone are the days when a small room and substandard meals would suffice. Students now have higher expectations, leading developers and owners/operators in the housing space to cater to this demand and provide enhanced living experiences.
- Increase in International Students: India has emerged as an attractive destination for international students from 164 countries. The government's "Study in India" campaign, launched in 2018, has further enhanced India's appeal by offering premium education at affordable rates. This has resulted in over 40,000 international students currently enrolled in various Indian colleges. The campaign is expected to attract close to 200,000 students to India, further boosting the demand for suitable student housing options.
Challenges in the Student Housing Market
While the student housing market presents immense growth potential, several challenges need to be addressed to optimize the industry's performance and meet the evolving needs of students:
- Security and Trust Issues: Ensuring student safety and building trust in housing accommodations are critical concerns that need to be effectively addressed.
- Limited On-Campus Housing Capacity: Insufficient availability of on-campus housing poses a significant challenge in meeting the growing demand. Many university campuses, particularly those located in urban areas, struggle to expand their existing student housing due to a lack of greenfield land or a lack of initiative caused by time-consuming bureaucratic approvals. On-campus housing fulfills 20% of total demand while the remaining need is fulfilled by unorganized small aggregators.
- Lack of Standardized Booking Platforms: The absence of unified platforms for seamless housing bookings makes it challenging for students to find suitable accommodation, resulting in a fragmented market.
- Complaint Management and Tracking: Inefficient systems for managing and tracking tenant complaints create issues that need to be streamlined for a better student housing experience.
- Expense and Bill Tracking: Difficulties in accurately tracking expenses and bills pose challenges for both property owners and tenants, necessitating more efficient and transparent solutions. The Management usually has a paper based tracking system which can be easily misplaced.
- Lack of Visibility for Property Owners: Limited insights and analytics regarding occupancy, rent status, and property management hinder property owners from making informed decisions and optimizing their operations.
Homversity: Revolutionizing Student Housing
Introducing Homversity, a rising player in the student housing and co-living industry that is determined to completely digitalize India's massive student housing sector. By leveraging technology, innovation, and empathy, Homversity aims to address the challenges faced by students and working professionals when searching, booking, and staying at hostels, PGs, flats, or other forms of accommodation. Homversity serves as a standardized discovery, booking, and management application, aggregating a wide range of housing facilities.
- Multiple Property Management: Homversity offers property owners enhanced visibility and analytics, providing crucial information such as the availability and duration of empty beds. This empowers owners with concrete and reliable data, enabling them to optimize resource management, prevent malpractices, and facilitate efficient information exchange with property managers across various locations.
- Bill and Expense Tracking: The platform simplifies expense management for property owners, eliminating mismanagement and possible thefts by the managers by ensuring accurate tracking of bills and expenses.
- Rent Status and Notifications: Homversity enables streamlined rent tracking and communication with tenants, ensuring timely payment and reducing administrative burdens. For example, sending bulk reminders to the tenants that have unpaid rent due.
- Enhanced Housing Visibility: Students gain access to a wide range of housing accommodations, while property owners benefit from increased exposure and a broader reach for their facilities.
- Hostel Community: Homversity fosters a vibrant community for students and tenants, promoting a sense of belonging and camaraderie.
Institution-Centric Housing Search: The platform facilitates the search for housing near various educational institutions, ensuring convenience and proximity for students.