India’s education sector is poised to drive a significant demand for real estate, with projections estimating a need for over four billion square feet by 2034-35, according to a CBRE report. The surge in demand is attributed to a projected rise in student enrollments, which are expected to increase by 20%, reaching over 360 million students across K-12 and higher education. This growth necessitates a substantial expansion in educational infrastructure.
India already has one of the largest educational systems globally, with 1.49 million schools and 43 million higher education students. The country's rapid urbanisation, with an expected urban population of 675 million by 2035, further intensifies the need for quality educational facilities. Government initiatives like the National Education Policy are also creating favourable conditions for private sector investment in the sector.
The report highlights a shift towards more flexible, technology-integrated educational spaces that support diverse learning methods. Additionally, new schools and universities are focusing on health, safety, and sustainable design to meet the modern needs of students and staff. As a result, the demand for land, especially in urban areas and Tier-2 and Tier-3 cities, is expected to increase.
With the growing educational infrastructure, the report also notes a rise in Foreign Direct Investment (FDI) in the education sector, from 0.7% in 2019 to 1.4% in 2023, signaling investor confidence. This trend presents significant opportunities for real estate developers and investors as India’s education market continues to expand, supported by its large talent pool and growing economy.
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