The report said that Greater Noida is expected to receive a steady demand from students in the future owing to a large number of educational institutes present in Uttar Pradesh. Greater Noida represents a significant market for student housing with more than 1,00,000 students and 28,000 students enrolling each year for various courses.
“The concept of student housing has been gaining a fair amount of traction from the past few years. However, the ongoing pandemic has raised some existential questions for this upcoming asset class in the near to mid-term future,” Savills said in the report.
In this part of NCR, approximately 83,000 students require accommodation and form the potential segment of student housing. For these students, there is an availability of primarily three types of housing segments.
55% comprises of housing provided by national and local operators who offer accommodations to the majority of the students.
“Some of them operate on a structured basis offering amenities. 27% consists of hostels provided by the educational institutes on campus and 18% comprises of small-scale paying guest accommodation and apartments rented out in residential colonies,” the report highlights.
Greater Noida has more than 50 educational colleges. About 65% of the 83,000 students are from outside NCR and 18% from distant areas of NCR. 27% of students live in campus hostels and are less inclined to shift to any other accommodation.
73% represents the primary market that can be serviceable through improved and quality housing facilities.
“With on-campus hostel supply ranging between 20,000 to 22,000 beds, there stands an addressable market of more than 60,000 – 65,000 students which can be catered by the organised student housing operators,” the report said.
Currently, there are 150 student housing developments with 45,000 operational beds. Additionally, another 5,000 beds are expected to be added in the next 2-3 years. Knowledge Park and Sector Pi have emerged as preferred areas by students due to their proximity to all the major educational institutes in Greater Noida.
It is expected that the off-campus student housing market will comprise of approximately 50,000 beds. There is a demand-supply gap of 10,000 – 13,000 beds. This clubbed with supply from unorganised/individual units together forms the potential target market of approximately 30,000 to 33,000 beds for an organised student housing operator providing better amenities and quality development.