India's Education Sector Set to Transform Real Estate Landscape by 2035

India's burgeoning education sector is poised to create over 4 billion square feet of real estate demand by 2035, according to a CBRE report. The sector's growth, valued at USD 313 billion by 2030, is driven by increased enrollments, supportive policies, urbanization, and a rise in private investments.

India's education sector is predicted to generate more than 4 billion square feet of real estate demand by the year 2034-35, a new CBRE report reveals. This growth projection is anchored in the sector's burgeoning potential, with expectations that India's education market will reach a staggering USD 313 billion valuation by 2030.

The anticipated expansion is fueled by supportive policy measures, rising rates of urbanization, and an influx of private investments. According to the report, student enrollments across K-12 and higher education levels are expected to increase 1.2 times, reaching beyond 360 million by 2035. This surge necessitates significant demand for educational infrastructure to house these students.

Currently, the Indian education sector is valued at USD 117 billion, witnessing extraordinary growth in both the K-12 and higher education segments. The K-12 sector comprises approximately 1.49 million schools catering to about 265 million students, while India hosts one of the world's largest higher education systems with around 43 million students across nearly 59,000 institutions. This growth, coupled with an anticipated urban population spike to 675 million by 2035, underscores the critical need for accessible, quality educational facilities, a demand that aligns with India's long-term real estate expansion.

The report highlights a notable surge in private sector investments, particularly influenced by the government's National Education Policy and progressive urbanization measures. Foreign Direct Investment (FDI) in education almost doubled from 0.7% in 2019 to 1.4% by 2023, with USD 9.5 billion FDI equity drawn to the sector since 2000, two-thirds of which arrived in the past four years.

In a shift from traditional designs, modern educational real estate now emphasizes adaptable spaces that foster collaborative learning and sustainability, featuring natural lighting and energy-efficient systems. As educational institutions increasingly seek eco-friendly, flexible infrastructure, demand for corresponding real estate in Tier I, II, and III cities is expected to boom, aided by urban growth and favorable local policies.

Anshuman Magazine, CEO of CBRE for India and other regions, noted the transformative trend toward 'flight-to-quality' in various real estate categories, urging educational institutions to prioritize adaptability, inclusivity, and safety in their infrastructure strategies. Similarly, Rami Kaushal of CBRE stressed that proactive government measures will bolster demand for quality educational properties, fortifying the vibrant investment landscape.

(With inputs from agencies.)