July 27, 2020: With the surge in coronavirus cases in the country and impact of Covid-19 pandemic on the real estate and its various segments, Student Accommodation Providers Association of India (SAPFI) and real estate consulting firm, CBRE South Asia Pvt. Ltd., have released a few findings on the future prospects of Shared Accommodation, a segment considered to be one of the fastest growing segments in real estate space.
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According to the survey, 63% operators are expecting a major shift towards professionally managed facilities. The findings further indicates that the product mix and offerings by players will witness a shift towards single and double occupancy rooms consequential to the consumer preference for social distancing.
Read: How student housing operators are adapting to new norms
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Cleanliness and hygiene standards will be important considerations for professionally managed student accommodation and co-living facilities. Over 50% of the operators suggested that they are looking at expanding the bed capacity in existing facilities.
Professionally managed shared accommodations are globally established asset classes in the real estate industry and developers are increasingly viewing co-living/student housing as a natural extension of their businesses. The current global pandemic has brought forth the need for quality student and professional accommodation. The developers will be putting a lot of emphasis on hygiene and cleanliness.”
The Covid-19 pandemic has severely impacted the flourishing shared accommodation segment including student housing and co-living. With the shift in consumer preference, the industry can be seen to be turning the present crisis into an opportunity.
India has seen incredible progress in the education sector and student enrolment. The safety of tenants will now be the top-most priority for operators. The industry is also relooking at the design aspects of upcoming properties in order to suit the needs for safety and to ensure that social distancing norms are adhered to. Going forward, revenue sharing model is expected to become the preferred business model as it helps mitigate the risk between operators and developer/landowners.
Operators are re-working on the design aspects of their upcoming properties. They feel the need to increase room size to suit the recent safety standards. There will also be an increased focus on Facility Management services and there might be an increased cost for sanitization procedures.
