APAC living investment triples to $21B

Knight Frank released its 'MSCI Asia Pacific Index Horizon 2026' report, revealing that institutional investment in the MSCI Asia Pacific Index living sector nearly tripled over the past decade to reach USD 21 billion between 2016 and 2025. The report highlights India's purpose-built student accommodation (PBSA) sector as a key long-term growth opportunity, driven by favorable demographics, expanding higher education, and supportive policy reforms. India has around 155 million people aged 18-23, including 53 million tertiary students, with the student population projected to exceed 70 million by 2035 as the government targets a 50% Gross Enrolment Ratio. Stricter visa rules and rising overseas education costs are encouraging domestic study, and international universities establishing offshore campuses are expected to boost demand for professionally managed student housing. Education accounts for 15-17% of interstate migration, creating potential accommodation demand for over 12 million students by 2035. The report also notes that institutional capital allocated to the APAC living sector rose 12% in 2025 despite a 5.9% decline in overall real estate fundraising, though investments fell nearly 10% year-on-year in the first half of 2026. Knight Frank expects transaction activity to pick up in the remainder of the year. Regional markets show varying maturity: Singapore's co-living market could support 35,000-40,000 keys by 2028, China — Hong Kong faces a shortage of around 137,000 student beds by 2028-29, and Australia's build-to-rent sector is expanding with over 16,000 completed apartments and a strong pipeline.