Virtually unheard of a few years ago, prop-tech (Property Technology) is today’s buzzword in the real estate space. India, home to one of the largest millennial populations in the world, has witnessed a huge disruption in the real estate industry, with millions migrating to metro cities from rural and suburban areas. This move has majorly been in search of better job opportunities and overall standard of living.
This crowd has unique housing needs; residences that are easy to find, conveniently located, and offer a frictionless experience while moving in/out. That being said, the prop-tech sector has grown leaps and bounds. Research shows that in 2008, a mere $20 Mn was invested in prop-tech startups. This spiked to a whopping $12 Bn by the end of the year 2018, making it one of the fastest developing industries across the globe.
The prop-tech industry has seen multiple trends over the years. However, one major trend that will never fade is student housing. Millions of students migrate to different cities and countries each year for higher education. According to a 2020 report by Cushman and Wakefield, there were 37.39 Mn student enrolments in India in 2018-19.
For students, accommodation becomes a home away from home. Gone are the days when student housing was about living in old hostel rooms where the amenities were minimal. Students today want the best-in-class facilities at an affordable rate.
Realising this, real estate companies have incorporated new-age technology into their businesses to enable students to find accommodation in a hassle-free manner that is best suited to their needs. Here we look at why student housing is set to be one of the biggest trends in the prop-tech industry.
Convenience Is Key
The growing demand for convenient and hassle-free accommodations has left real estate companies scramming to accommodate the needs of students who look for modernized accommodation with high-quality services to make for an ample living experience. They look forward to experiencing a time without overbearing landlords who hamper their freedom. This applies to students across the globe. Student housing is the solution that they turn to for independent and affordable living.
Advanced Tech As A Tool For Simplification
The advent of technology has made life considerably easier in almost all aspects. The real estate industry, one that largely follows conventional methods, has been slower in adopting new age-technologies like IoT, AI, and ML and so on when compared to other sectors like banking and finance or education.
However, there has been steady progress in the integration of technology to help people find accommodation that is not only perfectly suited to their preferences but also is affordable. There are innumerable platforms through which students can filter through a diverse range of accommodation based on their personal requirements.
Education is one of the few sectors that is recession-proof. Having said this, an increasing enrolment rate will lead to a steady demand for student housing. As a student, one would always prefer to have all the necessary amenities in proximity, considering busy university schedules. Living in fully-furnished accommodations is more convenient since semi-furnished or unfurnished houses require them to spend more and this might not be feasible.
According to various surveys, Delhi-NCR, Mumbai, and Pune have been rated as the top markets for student housing in India. In conclusion, the student housing sector is an emerging one that is constantly evolving and real estate players and those companies offering exclusive student housing would do well to bear this in mind. But what the future holds for this industry is something that we would have to wait and see.