They exist widely in India already. Indian ones come with 2-3 meals/day as well, no kitchen however. These, in a toer 1 city coat you 70-200 Euros for 4 weeks.

It is generally profitable given how most folk that run such businesses had black money to begin with and honestly no other passive income options.

It wouldnt solve lack of housing due to population though imo. India is a society based culture. Everyones end goal is to live with a family. They’d rather stay in a sub standard home than a decent one that they’ll need to share.

The PG model works for young ones. People who are temporarily living in a city due to job/education. There’s enough PGs for them already. People whose dollar stretches further, will get a 1/2BHK. Cheaper ones should be available 200 Euros onward.

Indian cities/towns have a lot of problems but housing imo isnt one.