Developer Reluctance toward Purpose-Built Student Accommodation (PBSA) Investment in India: Evidence from a Comparative International Perspective

Abstract

India's higher education sector has witnessed rapid expansion over the past decade, creating significant demand for quality student accommodation. Despite an estimated shortage of more than three million beds and attractive investment returns, Purpose-Built Student Accommodation (PBSA) remains an underdeveloped real estate asset class in India. This study investigates the factors contributing to developers' reluctance to invest in the Indian PBSA sector and compares these challenges with practices adopted in mature PBSA markets such as the United Kingdom, the United States, and Australia. A quantitative research approach was adopted using purposive sampling, and primary data were collected from 25 real estate professionals through a structured questionnaire. The responses were analysed using descriptive statistics and weighted mean analysis to rank the factors influencing investment decisions. The findings reveal that market and institutional factors constitute the most significant barrier (Mean = 4.50), followed by regulatory (Mean = 3.97), financial (Mean = 3.93), and operational factors (Mean = 3.92). The study concludes that stronger university-developer partnerships, a dedicated PBSA regulatory framework, and improved institutional financing mechanisms are essential to enhance developer confidence. The research contributes to the limited empirical literature on India's PBSA sector by providing evidence-based insights and policy recommendations that can support institutional investment and sustainable growth in student housing.