APAC living sector investments triple to $21 billion; India's PBSA market eyes 12 million student housing demand by 2035: Knight Frank

Asia-Pacific's living sector has emerged as one of the fastest-growing real estate investment themes, with institutional investments nearly tripling to $21 billion between 2016 and 2025, according to Knight Frank. The property consultant believes India is well placed to capitalise on this trend, with its purpose-built student accommodation (PBSA) segment expected to witness strong institutional interest amid rising higher education enrolment and student mobility.

Knight Frank's latest Asia-Pacific Horizon 2026 – From Niche to Core: Why APAC Living Sectors are Entering the Mainstream report highlights India's demographic advantage, noting that the country has 155 million people in the 18-23 age group, including 53 million tertiary students. With the government's target of raising the Gross Enrolment Ratio (GER) to 50%, the tertiary student population is projected to exceed 70 million by 2035, significantly increasing the need for professionally managed student housing.

India's PBSA market offers long-term growth potential

According to the report, tightening visa regulations and rising overseas education costs are encouraging more students to pursue higher education within India. At the same time, the entry of leading international universities through offshore campuses is expected to further boost demand for organised student accommodation.

Education already accounts for an estimated 15-17% of interstate migration, creating a potential demand pool of over 12 million students requiring accommodation by 2035. Knight Frank said this widening supply gap presents a significant opportunity for institutional investors to develop scalable, professionally managed PBSA assets.

Commenting on the findings, Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said strong demographic fundamentals, expanding higher education infrastructure and increasing student mobility are generating sustained demand for professionally managed student accommodation. He added that supportive policy measures and growing investor interest in alternative real estate segments are expected to accelerate institutional participation, making PBSA an integral part of India's evolving living ecosystem.

Institutional capital increasingly targets living assets

Across Asia-Pacific, institutional capital dedicated to living-sector assets increased 12% in 2025, even as overall real estate fundraising declined 5.9% during the year. Although investments in the sector moderated by nearly 10% year-on-year in the first half of 2026, Knight Frank expects transaction activity to strengthen in the remainder of the year.

The report also points to growing investor interest in co-living, senior housing and PBSA across the region, driven by housing affordability challenges, changing household structures and demographic shifts.

Knight Frank Asia-Pacific Head of Research Christine Li said investors are increasingly adopting integrated residential platforms and adaptive reuse strategies to cater to multiple tenant segments while improving returns and reducing execution risks. These structural trends, the report said, are expected to cement the living sector's position as a key component of diversified real estate portfolios across Asia-Pacific.