India’s Education Sector to Drive 4 Billion Sq Ft Real Estate Demand: CBRE

New Delhi / October 29, 2024: Real Estate Consulting firm CBRE South Asia Pvt. Ltd. announced the findings of its report, ‘Exploring the Intersection of Education and Real Estate in India’.  According to the report, the additional real estate demand from India’s education sector is estimated at over 4 bn. sq. ft. by 2034-35. 

Fuelled by strong fundamentals and proactive policy measures, India’s education sector is forecast to reach a market size of $313 billion by 2030, as per industry estimates. Furthermore, student enrolments across K-12 and higher education segments are expected to increase 1.2 times by 2034-35, surpassing 360 million. A combination of these factors is likely to necessitate additional real estate demand, CBRE said in a statement.

CBRE India conducted a real estate opportunity assessment to evaluate the additional space requirement of K-12 and higher education institutions that can accommodate the projected growth in student enrolment in India. This data-driven approach utilised historical and current student enrolment figures to establish a baseline for growth projections, a statement from CBRE India said. 

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “As demand for quality educational infrastructure grows, strategic investments will be essential to address future needs. In India, the education sector is undergoing a significant transformation, influenced by the COVID-19 pandemic and the accelerated integration of technology. This shift has fostered innovative educational solutions and new design models. 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, “The evolving educational landscape is creating a paradigm shift for the real estate industry. India’s large talent pool, coupled with the country’s emergence as a global business destination, syncs well with the current trajectory of the real estate sector. 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.”

India’s education sector, valued at USD 117 billion, is experiencing significant growth, particularly in the K-12 segment. With 1.49 million schools and 265 million school-going children, India’s education system is one of the world’s largest. The country’s burgeoning economy, young population, and rising income levels are driving demand for quality education, leading to increased investments in the sector. Government initiatives like the National Education Policy are further fueling this growth, the statement added.

CBRE’s report highlights the investment potential in various academic centers across India. As the sector evolves, there’s a growing emphasis on technology, flexible spaces, and sustainable design in educational buildings. The expansion of education, especially in tier-II and tier-III cities, is expected to drive demand for land and infrastructure development, presenting opportunities for real estate players.