Business News | India's Education Sector to Drive over 4 Billion Sq. Ft. Real Estate Demand by 2035: CBRE Report
Get latest articles and stories on Business at LatestLY. The report emphasizes the sector's growth potential, with India's education market expected to reach a valuation of USD 313 billion by 2030, driven by supportive policy measures, increased urbanization, and the rise of private investments.
New Delhi [India], October 29 (ANI): India's education sector will generate over 4 billion square feet of real estate demand by 2034-35, according to CBRE report.
The report emphasizes the sector's growth potential, with India's education market expected to reach a valuation of USD 313 billion by 2030, driven by supportive policy measures, increased urbanization, and the rise of private investments.
According to the report, student enrolments across K-12 and higher education are anticipated to rise 1.2 times to surpass 360 million by 2035.
CBRE's real estate opportunity assessment projects significant demand for educational spaces as institutions seek to accommodate these growing enrolment figures.
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Currently valued at USD 117 billion, India's education sector is witnessing remarkable expansion. The K-12 segment, with 1.49 million schools and a student population of approximately 265 million, is crucial to India's education infrastructure.
The country also boasts one of the largest higher education systems globally, with 43 million students across nearly 59,000 institutions. This growing demographic, coupled with the projected urban population of 675 million by 2035, signals a robust demand for accessible and quality educational facilities, aligning with India's long-term real estate demand.
The report points to an increase in private sector investment, particularly with the government's National Education Policy and progressive urbanization policies creating favorable conditions. Foreign Direct Investment (FDI) in the education sector nearly doubled from 0.7 per cent in 2019 to 1.4 per cent by 2023.
Since 2000, India's education sector has attracted USD 9.5 billion in FDI equity, with two-thirds of this investment occurring in the past four years, underscoring growing investor confidence.
The study also reveals that education-focused real estate is expanding beyond traditional classrooms. Current designs prioritize adaptive spaces that encourage collaborative learning and sustainable features, such as natural lighting and energy-efficient systems.
As more educational institutions invest in flexible, eco-friendly infrastructure, demand for suitable land, particularly in Tier I, II, and III cities, is expected to surge, supported by urban expansion and local government policies.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "The 'flight-to-quality' trend is impacting various asset classes, prompting schools, colleges, and universities to prioritize flexible, collaborative learning spaces, inclusive design, and health and safety in their building strategies. As the educational landscape evolves, stakeholders must adapt to these trends to shape the future of educational infrastructure in India."
Rami Kaushal, Managing Director - Consulting & Valuation Services, India, Middle East & Africa, said, "Some of the proactive policies undertaken by the government will further fuel demand for quality educational realty assets, boosting the investment ecosystem that has already gained significant momentum." (ANI)
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