Chart­ing the Way FORWARD

Realty Plus - - Focus Feature -

Thus, GST would not be ap­pli­ca­ble on an­nual sub­scrip­tion/fees charged as lodg­ing/board­ing charges by ed­u­ca­tional in­sti­tu­tions from stu­dents for hos­tels. Con­fu­sion, though, still ex­ists when it comes to pri­vate stu­dent hous­ing providers es­pe­cially if the billing en­tity to stu­dents is not the ed­u­ca­tional in­sti­tu­tion. Even if the ed­u­ca­tional in­sti­tu­tion is the billing en­tity for hous­ing, there is no clar­ity on an­cil­lary ser­vices/ameni­ties which are some­times sep­a­rately charged like food, laun­dry, recre­ational fa­cil­i­ties etc. “Tax in­cen­tives should be given to make this seg­ment at­trac­tive to the op­er­a­tors and stan­dard­iza­tion of ameni­ties and ser­vices should be laid down by the gov­ern­ment, opined, Goyal. Stu­dent hous­ing as a prod­uct is se­verely un­der­sup­plied in the ma­jor mar­kets, and has the po­ten­tial of high and sus­tained oc­cu­pancy rates. While, in­vestors f are al­ready look­ing at cap­i­tal­iz­ing on this op­por­tu­nity for stronger re­turns, the de­vel­op­ers too are for­ay­ing in this sec­tor “The po­ten­tial for suc­cess in the stu­dent hous­ing real es­tate mar­ket in In­dia could be sim­i­lar or even more than that in UK. Some of our cities such as Pune, Ben­galuru and Chen­nai, see high an­nual stu­dent en­rol­ments. A broad es­ti­mate in­di­cates that cur­rently cities like Pune and Ben­galuru only ac­com­mo­date about 18 to 20% of the in­ward mi­grat­ing stu­dents,.” stated Jalan. More­over, stu­dent hous­ing has been at­tract­ing a sig­nif­i­cant share of real es­tate in­vest­ment since mid-2017. Stud­ies of for­eign mar­kets sug­gest that stu­dent hous­ing real es­tate in­vest­ment trusts (REIT) have been out­per­form­ing all other REIT in­dices by a con­sid­er­able mar­gin. The rental yield, i.e. the rental in­come as a per­cent­age of the property’s value, is five times that of a three-bed­room flat in a pre­mium lo­cal­ity in the met­ros. With In­dian cities gain­ing mo­men­tum as world class ed­u­ca­tional and re­search hubs, Stu­dent Hous­ing as an as­set class will slowly pick up in In­dia over a decade. How­ever, the de­vel­op­ers, in­vestors and gov­ern­ment should make col­lab­o­ra­tive ef­forts to make it a suc­cess­ful or­ga­nized busi­ness across the cities.

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