The real estate demand from India’s education sector is estimated at over 4 billion square feet by the year 2034-35 as student enrolments across K-12 and higher education segments are expected to increase 1.2 times to exceed 360 million, according to a report released by property consultancy CBRE on October 29.
The consultant in its report titled ‘Exploring the Intersection of Education and Real Estate in India’ stated that the Indian education sector presently comprises 1.49 million schools fostering K-12 education for approximately 265 million school-going children alongside one of the world’s largest higher educational systems with an estimated 43 million students enrolling across nearly 59,000 institutions.
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The report further stated that as the education sector evolves, factors such as technology permeation, revamped building designs, and focus on health and safety are likely to define education real estate.
Besides, modern educational building design must prioritise flexibility so that spaces can be reconfigured to adapt to various teaching methods and activities, developing a dynamic learning environment, the report said. To address this and move away from traditional classroom setups, educational buildings now include collaborative spaces to encourage teamwork and group learning, it added.
Moreover, sustainable, and eco-friendly design elements, such as energy-efficient systems and natural lighting, are becoming increasingly common to reduce the environmental impact of educational buildings, per the report.
Educational infrastructure to fuel land demand
The report also projects further expansion by stakeholders, leading to a spurt in demand for land. As educational institutions seek suitable locations, unlocking potential land demarcated for municipalities across Tier-1 cities will likely translate to more land acquisitions for setting up schools or colleges, it said. Additionally, aggressive expansion in Tier-2 and Tier-3 cities is expected to fuel land demand for new educational infrastructure, it further added.
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Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and 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.”
Rami Kaushal, Managing Director – Consulting and Valuation Services, India, Middle East and 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.”
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