Real estate opportunity in education sector estimated at over 4 billion square feet over next 10 years: report

Real estate demand from India’s education sector is estimated to be over 4 billion square feet by 2034-35 as student enrollment in the K-12 and higher education segments is expected to increase 1.2 times to cross 360 million, according to a report. published by real estate consultancy CBRE, October 29.

The consultant, in its report titled ‘Exploring the Intersection of Education and Real Estate in India’, stated that the Indian education sector currently comprises 1.49 million schools providing K-12 education to approximately 265 million schoolchildren and is also one of the largest in the world higher educational institutions. systems that enroll an estimated 43 million students at nearly 59,000 institutions.

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The report further states that as the education sector matures, factors such as technology penetration, updated building designs and focus on health and safety are likely to shape the education real estate landscape.

Additionally, when designing modern educational buildings, flexibility should be a priority so that space can be reconfigured to adapt to different learning methods and activities, creating dynamic learning environments, the report says. To address this issue and move away from traditional classrooms, educational buildings now include collaborative spaces that promote teamwork and group learning, the company added.

Moreover, according to the report, sustainable and environmentally friendly design elements such as energy-efficient systems and natural lighting are becoming more common to reduce the environmental impact of educational buildings.

Educational infrastructure to stimulate demand for land

The report also predicts further expansion by stakeholders, leading to a surge in demand for land. As educational institutions look for suitable locations, opening up of potential land demarcated for municipalities in tier-1 cities is likely to lead to acquisition of more land for setting up schools or colleges, it said. Additionally, aggressive expansion of tier-2 and tier-3 cities is expected to drive demand for land for new education infrastructure, it added.

Read also: In January-September 2024, equity investments in the real estate sector increased by 46% to $8.9 billion.

Anshuman Magazine, Chairman and CEO of CBRE India, Southeast Asia, Middle East and Africa said: “The ‘flight to quality’ trend is impacting across asset classes, prompting schools, colleges and universities to prioritize flexible, collaborative spaces learning, inclusive design, and health and safety in their construction strategies.”

Rami Kaushal, Managing Director, Consulting & Valuation, India, Middle East and Africa, said, “The evolving educational environment is driving a paradigm shift in 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 measures being implemented by the government will further stimulate demand for quality educational real estate assets, stimulating an investment ecosystem that has already gained significant momentum.”

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