The Indian government, alongside its “Make in India” initiative, is working to make India an attractive destination for international students. The “Study in India” initiative, introduced by the Ministry of Human Resource Development, aims to highlight India as a country offering affordable and high-quality education. The secretary of the Department of Higher Education mentioned in a press release in 2024 that “they are selecting the best 150 Indian institutions, such as IITs, NITs, and those recognized by the National Institutional Ranking Framework (NIRF) and the National Assessment and Accreditation Council (NAAC), for foreign students to apply to, with merit being the deciding factor.”
India’s efforts to attract foreign universities have evolved through various phases and policy changes. The National Education Policy (NEP) 2020, which supports the internationalisation of education, encourages top global institutions to set up campuses in India. Despite these efforts, there is a significant imbalance between the number of international students coming to India and the number of Indian students going abroad. In 2019, only 46,878 international students from 170 countries chose India as destination country , compared to 508,174 Indian students studying abroad.
However, the UNESCO Global Education Monitoring (GEM) Report 2020 indicates that India is becoming a preferred destination for foreign students, particularly from South Asia. One major challenge that could slow this growth is the lack of student housing, with inconsistent standards across the real-estate sector in India.
India’s educational institutions have been growing quickly, with the number of universities increasing by nearly 10% in the last five years. According to the All India Survey on Higher Education (AISHE) report 2021, the number of universities in India grew from 903 in 2017 to 1,168 in 2021, which is about a 10% increase. However, the number of hostel accommodations has not kept up with this growth. There is not enough space in university hostels, and foreign students often have to compete for beds with domestic students. For example, in major educational states like Uttar Pradesh, Maharashtra, Tamil Nadu, and Karnataka, over 4 million students are enrolled, but there is a big shortage of hostel beds.
Uttar Pradesh alone has a deficit of 6 million beds, and Maharashtra has a gap of 4.1 million beds as per CBRE report of 2020. The student-to-bed ratio is alarmingly low, with only one hostel bed available for every six students enrolled in higher education. As a result, many students are forced to rely on unregulated and often unsafe private housing options, further exacerbating the problem. Moreover, the lack of uniform standards in safety and service quality across the accommodation sector has left many students feeling unsafe or dissatisfied.
Based on the AISHE 2021, female students, who make up nearly 47% of enrollments, are especially vulnerable, facing security concerns and a lack of adequate protection in many student housing facilities.as per Padhan 2023 study on student accommodation in India. It is a tough challenge for local students, and even worse for foreign students.Foreign students often face problems with hostel food and living conditions, which may not suit their dietary needs or cultural preferences. This can make them feel uncomfortable and less connected to the campus community.
The Growing Demand and Investment Potential
Private investors are noticing the high demand for good student housing and are increasingly looking to invest in this market. Big companies in this sector, such as Stanza Living, Good Host Spaces, and Zolo Stays, have received large amounts of investment in recent years from major venture capital firms and institutional investors. The student housing market is expected to grow by 8%-10% each year, with 600,000 more student accommodation beds expected to be added in the next 3–4 years as per CBRE report of 2019.
As per CBRE report of 2020, Stanza Living has raised $70 million from Sequoia and Falcon Edge, Good Host Spaces was acquired by Goldman Sachs and HDFC for $60–65 million, and Zolo Stays got $35 million from Nexus Ventures for student accommodation in India. This strong investment shows that investors believe there is a big opportunity in solving the student housing shortage in India.
Potential Solutions: Bridging the Gap
A key strategy for overcoming the infrastructure shortfall is the adoption of Public-Private Partnership (PPP) models, such as the Build-Own-Operate-Transfer (BOOT) model. Under this model, universities can partner with private housing operators to provide student accommodation without incurring the upfront costs of infrastructure development. Private companies bring in expertise, ensuring that the accommodation meets modern standards and is well-maintained, while universities benefit from expanded capacity.
Implementing policies like the Model Tenancy Act which was introduced in 2020 could significantly improve the student housing sector. So far, Tamil Nadu, Andhra Pradesh, Uttar Pradesh, and Assam has adopted the act. The act’s provisions, such as capping security deposits, defining landlord-tenant responsibilities, and setting up rent courts for dispute resolution, would create a more structured environment for student housing. This would help standardize the sector, improve safety, and encourage more private investment in student accommodation. To encourage the development of more affordable and high-quality student housing, the government could offer tax incentives, subsidies, or reduced property tax rates for developers focusing on student accommodations.
These measures would make housing more affordable for students while stimulating further investment in the sector. It is essential that all student housing, whether on-campus or private, adheres to standardized safety protocols, such as 24/7 security, CCTV surveillance, and regular safety audits. By ensuring that all accommodations meet these basic requirements, India can significantly improve the student experience and attract more international students. Rather than concentrating development in already oversaturated metro cities with limited development scope, investment should be directed toward emerging educational hubs like Ahmedabad (has University of Wollongong’s (Australia) campus at GIFT City), Hyderabad ( has an upcoming campuses of Deakin University (Australia) and University of Wollongong (Australia), and Pune. These cities are seeing a rise in student enrollments, and expanding student accommodation options in these areas would help balance supply and demand.
For a Bright Future with the Right Investments: India’s growing status as a global education hub is undeniable, but to fully capitalise on this opportunity, the country must address its student housing challenges. By embracing public-private partnerships, implementing regulatory reforms, and making strategic investments in emerging educational cities, India can create a robust and sustainable student accommodation ecosystem. With improved infrastructure, safety standards, and affordability, India can solidify its position as a preferred destination for international students, ensuring that both local and foreign students have access to quality housing during their academic journey.
Dr Kanika Bakshi is an accomplished academic with expertise in the Economics of Education, with extensive research on migration trends and policies. She earned her Ph.D. from Jawaharlal Nehru University, where her thesis analyzed return migration and occupational choices of Indian skilled workers over a decade. She has over a decade of teaching experience and currently working as assistant professor at Dr Bhim Rao Ambedkar College, Delhi University She has published widely, including SCOPUS-indexed articles, and contributed to journals like Asia and Pacific Migration Journal and International Migration. Her recent work explores global migration, STEM professionals, and diaspora entrepreneurship.