India’s higher education landscape is undergoing a quiet transformation, and with it, a new opportunity is emerging for real estate investors. As millions more students enrol in colleges, international universities establish campuses in India, and studying abroad becomes increasingly expensive, demand for purpose-built student accommodation (PBSA) is rising rapidly.

Backed by favourable demographics, expanding higher education and growing student mobility, India is fast emerging as one of the most promising student housing markets in the Asia-Pacific region.

According to a Knight Frank report, investments in the Asia-Pacific (APAC) living sector have reached $21 billion, nearly tripling over the past decade, with India well-positioned to benefit from the sector’s long-term growth.

The report noted that APAC living-sector investments increased significantly between 2016 and 2025, driven by changing demographics and evolving housing needs. India, in particular, stands to gain from its expanding higher education ecosystem and supportive policy reforms.

Despite a 5.9% decline in overall real estate fundraising, investments in the APAC living sector rose 12% in 2025. Although investment activity in the sector declined nearly 10% year-on-year during the first half of 2026, Knight Frank expects transactions to gather pace in the coming months.