The recent Budget allocation of ₹99,300 crore for the education sector and ₹3,000 crore for skill development will boost students’ housing or co-living.

“In Bengaluru, apart from the IT/ITES industry, education sector is turbocharging the city’s real estate market,” said Anuj Puri, Chairman – Anarock Property Consultants.

“Every year, the city attracts thousands of local, outstation and expatriate students. In fact, with over 10,000 overseas students, Karnataka has the highest number of students coming from foreign countries,” he added.

For developers, the market has evolved to suit the needs of this demand and existing buildings are being re-fitted out for co-living.

To tap this market Puravankara Ltd has embarked on tapping co-living space. There is a lacuna space specifically for co-living, Ashish Puravankara, Managing Director had said.

Over the last three years demand for students housing has been growing at 6.55 per cent in the number of beds in hostels across India. However, it has not kept pace with the increase in student enrolments.

Anuj Puri said “In 2017-18, the total enrolment was estimated at 36.6 million, while hostel intake was 6.5 million. In 2018-19, enrolments rose to over 37 million, while hostel intake continued at 6.5 million.”

At the moment many private institutions like MS Ramaiah have now established dedicated student living spaces. Manipal Education and Medical Group had earlier launched a chain of branded youth hostels offering 10,000 beds through the independent brand Yoho.

“Sensing potential in the city’s student housing sector, Wall Street giant Goldman Sachs has acquired a 75 per cent stake in Yoho for ₹350 crore, helping the company to expand its footprint and add another 20,000 rooms. National players like Stanza Living are also betting big on Bengaluru and have plans to provide 5,000 beds to cater to the city’s growing population,” said Puri.

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