In the last few years, investing in second homes near educational spots has become a trend among homebuyers and investors. This dynamic is influenced by factors like the increasing demand for rental properties near colleges, the scope of long-term capital growth and the advancing appeal for hybrid working settings.
Educational institutions, mainly colleges, universities and research centres, provide a unique combination of constant demand, stability and the scope for future appreciation.
Let’s explore how for students, staff and faculty members, second homes have become a reliable investment avenue, offering personal and monetary returns to investors.
Why Educational Hubs are Ideal for Second Home Investments
Educational hubs are considered to be perfect for investing in second homes for many reasons, which are as follows:
- Constant Demand for Rental Properties: Investing in second homes near educational hubs is advantageous due to the consistent demand for rental properties. For instance, in India, the student relocation figure stands at approximately 11 million and is projected to reach 31 million by 2036.
This substantial and growing student population ensures a steady need for housing, enabling investors to secure continuous long-term rental returns.
- Evolving Market: Educational hubs normally lure local and global students, resulting in population growth in the area. This can facilitate high demand for real estate properties and increase property prices.
- Connectivity to Amenities: Educational venues are located in a way that is close to essential services like transport, shopping complexes, recreational zones and healthcare centres. This makes them sought-after for those who wish to invest in second homes.
- Long-Term Growth: Because of their status as central attraction spots, properties near educational hubs tend to grow over time. The emergence of colleges and universities can create a stable and thriving economy, which can increase property prices.
- Scope for Vacation Rentals: Various educational spots also lure tourists for programs like conferences, graduation and sports events. This can increase the demand for properties in the area who wish to stay in vacation rentals in the short term, offering investors a broad range of rental opportunities.
For instance, the global short-term vacation rental market was valued at approximately $134.51 billion in 2024 and is projected to grow at a CAGR of 11.4% from 2025 to 2030, indicating a rising demand for such accommodations.
- Security and Community: Educational hubs have a youthful and thriving community that has a strong safety sense, which can be preferable for those who want a second home in safer surroundings.
- Tax Benefits: Investing in properties near educational hubs can be advantageous due to potential tax benefits. In some regions, local governments offer tax incentives to encourage development in areas surrounding educational institutions.
These incentives may include property tax abatements or deductions aimed at fostering community growth and supporting educational environments.
- Networking Opportunities: Investors in and near educational centres might get advantages from professional networking opportunities with researchers and faculty from many fields. This can offer personal or business connections that can greatly enhance investment potential.
- Government Assistance for Education: In various countries, the government offers support and incentives for educational institutions and other development programs. These can enhance the growth and value of properties near these educational hubs.
- High Demand for Family Housing Options: Various educational hubs also lure families that have students, mainly those who are in colleges or universities. By 2040, the number of higher education students worldwide is expected to reach 594 million, underscoring the escalating demand for housing solutions near educational centres.
The families value long-term housing choices in proximity to the institution, along with a second home that can align well with that demand.
- Ease in Usage: Investors can opt to select their second home for many reasons. For instance, it can serve as an important tool for a long-term rental, short-term rental vacation or even a home base during times of visits or academic programs. This convenience and ease make the property versatile.
Read Also: Location Stories – Best Locations To Buy Home in Mumbai – Rustomjee
Top Educational Hubs for Luxury Second Home Investments
When selecting luxury second homes for investment purposes near educational hubs, the perfect locations normally blend reputed institutions, strong economic prosperity and dynamic traditional and cultural communities.
- Mumbai, Maharashtra:
Places like Bandra, Juhu, Powai and South Mumbai provide elite properties with a blend of stunning sea views, premium amenities and connectivity to top institutions. The metro city has a cosmopolitan vibe and commercial opportunities that make it a preferred choice for investing in luxury second homes.
- Bangalore, Karnataka:
The city provides elite real estate options in areas like Koramangala, Whitefield and Indiranagar, wherein access to reputed universities and campuses has made it a highly demanded place for students and working professionals alike.
The city boasts a brilliant climate and has a developing economy that further increases its demand for investing in luxury second homes.
- Delhi NCR:
Along with its neighbouring areas like Noida and Gurgaon, Delhi is a reputed educational hub in India that has many well-known institutions. Major areas like Vasant Vihar and Greater Kailash boast many premium properties and simple access to reputed universities.
The city is famous for its political trajectory and broad cultural history, thus making it one of the best investment spots for second homes.
- Chennai, Tamil Nadu:
Chennai is a premier educational and traditional city in the southern part of India, providing luxurious residential options in areas like Boat Club Road, Besant Nagar and Adyar.
The city has many educational hubs that are highly regarded, and its coastal charm, appealing climate and blooming economy have made it a sought-after destination for elite property investments.
- Coimbatore, Tamil Nadu:
Coimbatore is evolving as an important educational and industrial spot in the southern part of India. The city provides elite real estate choices in Peelamedu, RS Puram and Race Course Road.
The area has an emerging educational infrastructure, a pleasant atmosphere and connectivity to the Western Ghats. These factors have made it an attractive option for those who value a calm and affordable luxury lifestyle.
Read Also: Build a Premium Mumbai Real Estate Portfolio with Rustomjee
Conclusion
Investing in second homes near educational places represents a lucrative opportunity for those who wish to diversify their portfolio basket in real estate. The blend of constant rental demand, scope for rise in property value and the desirability of these areas makes them an attractive option for both short and long-term investments.
As this trend continues to progress, investors are at an advantage of owning property in a vibrant community. Get personalised insights on second homes and invest in Rustomjee’s premium residential properties for a safe and sound financial future.
FAQs
- Which are the top educational suburbs of Mumbai?
The top educational suburbs of Mumbai are Bandra, famous for its connectivity to reputed institutions near BKC and brilliant connectivity; Powai, home to IIT Bombay and a rising student demographic; and Vile Parle, which has main educational venues like Mithibai College and NMIMS.
These areas are perfect for those who seek access to premium education and thriving communities.
- Which are some of the best schools and colleges in Mumbai?
Some of the best schools and colleges in Mumbai are Dhirubhai Ambani International School, famous for its top-notch infrastructure and The Cathedral and John Connon School, known for its academic excellence. Reputed colleges in the city include the IIT Bombay and St.Xavier’s College, that has a strong reputation and offer various programs and courses.
- Can second homes near top educational hubs double as both a smart investment and a legacy asset for future generations?
Yes, second homes near educational hubs offer both financial and generational value. They provide steady rental income from students and faculty while appreciating over time. Additionally, they can serve as a long-term asset for future family members pursuing education.
