Mumbai, August 4, 2026: India’s purpose-built student accommodation (PBSA) sector has emerged as one of the Asia-Pacific region’s most attractive long-term institutional investment opportunities, according to Knight Frank’s Asia-Pacific Horizon 2026 report. The study highlights India’s demographic strength, with 155 million people aged 18-23 and 53 million tertiary students, as a key driver for the sector’s growth.
Knight Frank projects that the country’s tertiary student population could surpass 70 million by 2035, supported by the government’s target of achieving a 50% Gross Enrolment Ratio (GER). This expansion is expected to significantly increase demand for institutional-quality student accommodation.
Rising domestic demand and policy support
The report notes that tightening visa regulations and higher overseas education costs are prompting more students to pursue higher education within India. Additionally, the establishment of offshore campuses by international universities is further boosting demand for student housing. Education currently accounts for an estimated 15-17% of interstate migration, creating a potential demand pool of over 12 million students requiring accommodation by 2035.
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said that strong demographic fundamentals, a growing higher education ecosystem, and increasing student mobility are driving sustained demand for professionally managed student accommodation in India. He added that this trend is expected to accelerate institutional participation and lead to the development of higher-quality, purpose-built assets.
APAC living sector investment trends
Across the Asia-Pacific region, investment in the living sector—comprising PBSA, co-living, and senior housing—nearly tripled between 2016 and 2025, reaching USD 21 billion. The report attributes this growth to rising population mobility, housing affordability challenges, and persistent supply-demand mismatches, which are driving demand for professionally managed rental housing.
Institutional capital targeting living sectors in Asia-Pacific increased by 12% in 2025, despite an overall 5.9% decline in real estate fundraising. However, investments in the living sector softened by nearly 10% year-on-year in the first half of 2026, with Knight Frank expecting transaction momentum to pick up in the remainder of the year.
Structural shifts and regional developments
The report identifies several structural trends, including adaptive reuse of existing assets, owner-operator partnerships, and integrated residential platforms, as factors supporting the mainstream adoption of living sectors. Emerging segments such as co-living and senior housing are also attracting institutional attention, with demand for co-living supported by changing household structures and delayed marriages, and senior housing demand rising due to ageing populations.
In Singapore, Knight Frank estimates the co-living sector could support 35,000–40,000 keys by 2028. Hong Kong SAR is projected to face a student housing shortfall of around 137,000 beds by the 2028/29 academic year, prompting conversions of hotels and office buildings into PBSA. Australia’s build-to-rent sector is expanding, with over 16,000 completed apartments, 12,200 under construction, and 25,900 approved for development.
Investor strategies and outlook
Christine Li, Head of Research, Knight Frank Asia-Pacific, said that the convergence of occupier demand across multifamily, co-living, and student accommodation is creating opportunities for investors to serve multiple tenant segments through integrated platforms. She noted that adaptive reuse strategies offer shorter delivery timelines and lower execution risk compared to new development, and that market gaps across the region continue to provide scope for higher returns through operational and capital allocation strategies.
Knight Frank is a global property consultancy with a significant presence in India and across the Asia-Pacific region.
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