What Drives The Demand Of PG Accommodations

What Drives The Demand Of PG Accommodations

PG Accommodations and hostels are amongst the most economical living options in a city. The proliferation of such accommodations has increased considerably in all metropolitan cities and metropolitan regions. Their existence is the direct impact of the economic development that has taken place over the past 2 decades.

When the nation opened up to liberalization two decades earlier, not only did the metropolitan cities took charge but also some other far sighted leaders took the opportunity to transform their areas of governance into major economic hubs. Chief amongst such cities were Hyderabad and Pune.

Pune while on hand was always considered as the next destination to offload the pressures of Mumbai, Hyderabad on the other hand emerged from a historical city into a new economic hub.Similarly, Noida’s development had been pre- planned and Gurgaon being in the vicinity of Delhi also jumped at the opportunity.

Within two decades the landscape of all the aforementioned cities had transformed. Vacant stretches of land were dotted with modern commercial buildings which now housed the offices of some of the biggest organizations in the world. Suddenly, there was an explosion of work opportunities and the demand for work force grew in these regions.

Duty Calls 

The demand for thorough professionals remains high in all these cities. With the increasing commercial spaces, the demand for residential spaces also increases. While most of the residential spaces are acquired for living purposes, a part of the population that purchases homes near the commercial areas rents it out to all those who are temporarily in the city for work purposes.

In many cases, a house is transformed into multiple units which are then let out by landlords and property owners. There are still others who start the business of PG Accommodations by letting out a large section of their private homes.

If we take the example Jawahar Lal Nehru University, areas like Munirika and Ber Sarai- which lie in its vicinity- have been thriving for a long time now due to the business of PG in Delhi. These areas are the prime locations of choice of students who have not obtained accommodations within the university campus.

However the economic development of Delhi region as a whole has taken the business of PG accommodations to the next level. A paying guest in Delhi – who is a professional- now has to shell out a lot more than what students used to.

Many PG accommodations have been established by tying up with local companies. Such accommodations offer living quarters to professionals of organizations only. Many other home owners offer rooms and food services only to professionals after verifying their professional credentials.

Alternately, all those who own extra properties in the form of flats or independent houses lease them out to a group of professionals for a sum that comes out to be economical per head. In most of the cases such apartments are furnished and there is a provision for menial services like cleaning and cooking. These professionals are allowed to live independently and they are responsible for the overall property. In such cases, clauses are also laid down with clarity about the level of maintenance that would be done by the property owner and the level that would be taken care of by the tenants.

In Conclusion 

PG Accommodations are in great demand because of professionals who join at the lower rungs of companies. The number of such professionals is high and their purchasing power is low. This has allowed the blooming business of paying guests.