Imagine arriving in a new city for college and being whisked from the airport in a chauffeured car to a sleek residence. You're greeted with a cool drink, shown to a beautifully appointed room, and introduced to amenities like a rooftop pool, gym, and a schedule packed with weekend barbecues and Pilates sessions. This is no five-star hotel; it's the new face of student housing in India.
The Hostel Glow-Up: From Dorms to Luxury Living
Driven by fierce competition and the evolving aspirations of Gen Z students, the traditional paying guest (PG) accommodation and basic hostel have undergone a dramatic transformation. Rohan Gupta, co-founder and CMO of Colstay Ltd, which operates the luxury brand Aurus and mid-range Hive Hostels, confirms the shift. "These are nothing like your conventional hostels and PGs," he states. The company launched Aurus two years ago after noticing demand for a more elevated experience from their Hive residents.
The described luxury facility is Aurus Chapter 1 in Vile Parle, Mumbai, a 275-bed property for female students managed by a staff of 75. Colstay now runs four such Aurus properties in Mumbai and plans to expand to Ahmedabad, Noida, and Pune next year. This premium segment represents the newest frontier in student housing, with monthly rentals starting at Rs 50,000 for a single bed in a triple-occupancy room, plus a three-month security deposit.
Beyond Basics: Amenities Redefining Campus Life
Today's upscale hostels offer conveniences once rare even on overseas campuses. The list is extensive: professional housekeeping, laundry services, air-conditioned rooms, vending machines, dedicated lounges, pickleball courts, swimming pools, jacuzzis, curated community events, college drop-off services, and on-call doctors. A dedicated property manager handles everything from Wi-Fi issues to maintenance.
Gaurav Bhathena, director of Student Housing India Ltd, emphasizes the all-inclusive model. "Everything's included in the rent," he says. His father founded the company in 2015 in Juhu with just 20 spartan beds. It now operates over 1,100 beds across 15 facilities, complete with pools and pickleball courts. Annual rentals with them range between Rs 5 to 7 lakh, depending on location and room type.
This trend isn't confined to metros. Premium hostels are emerging in education hubs like Jaipur, Vizag, Noida, Ahmedabad, and Dehradun. The growth is fueled by data: the All India Survey on Higher Education 2021-22 reported a 4.6% rise in student enrolment to nearly 4.3 crore. Meanwhile, the Economic Survey 2024-25 noted a 13.8% increase in higher education institutions between 2014-15 and 2022-23. On-campus housing has failed to keep pace, with the India Brand Equity Foundation estimating an 80% gap between supply and demand—a void the private market is rushing to fill.
A Sound Investment: The Business of Student Housing
The sector's explosive growth has captured investor and developer interest. Hive Hostels, planning an IPO soon, is now valued at $35 million after securing $1.15 million in seed funding from Anchorage Capital Group earlier this year. Communezen Ventures, which runs the Uniliv and Huddle Stays brands, raised $2.78 million in a recent funding round.
Developers see a lucrative opportunity. Mayank Bajaj, founder of co-living company The Livlit, explains the appeal: "When a builder leases their property to a student housing or co-living space, they earn a 6-7% rental and 5-7% capital appreciation every five years. The average yield is a comfortable 13%." Some developers prefer holding properties as rental assets rather than selling.
Many operators are now acquiring land to build purpose-designed properties with compact private rooms and expansive common areas. As Shivansh Gambhir of Communezen Ventures puts it, this model is a win-win for both companies and colleges, extending campus infrastructure. With the sector projected to be worth Rs 6,822 crore by 2030, the brief for modern student housing is clear: go beyond basic and truly impress the new generation.
