Education real estate opportunity estimated at over 4 billion square feet over the next 10 years: report

Real estate demand from the Indian education sector is estimated to be over 4 billion square feet by 2034-35 as the number of students in primary and secondary education will increase 1.2 times to exceed 360 million, according to a report released by the Indian Education Sector . CBRE real estate consulting on October 29.

Real estate opportunities in the education sector are estimated to reach more than 4 billion square feet over the next 10 years. (Representative photo)(Pixabay)

The consultant in its report titled ‘Studying 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 school-going children, alongside one of the world’s largest schools higher education, an estimated 43 million students studying at nearly 59,000 institutions.

The report further stated that as the education sector evolves, factors such as the penetration of technology, modernized building designs and a focus on health and safety are likely to define education real estate.

Additionally, modern educational building design should prioritize flexibility so that rooms can be adapted to different teaching methods and activities, thus creating a dynamic learning environment, the report said. To address this issue and move away from traditional classrooms, educational buildings now include collaborative spaces that encourage teamwork and group learning, he added.

Moreover, the report shows that 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 driving land demand

The report also forecasts further expansion by interested parties, which will lead to a sharp increase in demand for land. As educational institutions look for suitable locations, unlocking potential municipal land in tier 1 cities is likely to translate into more land purchases for building schools and colleges, he said. Moreover, aggressive expansion in tier 2 and 3 cities is expected to increase the demand for land for new educational infrastructure, he further added.

Anshuman Magazine, president and CEO of India, Southeast Asia, Middle East and Africa, CBRE, said: “The flight to quality trend is impacting across asset classes, driving schools, colleges and universities to prioritize flexible, shared spaces for science, inclusive design and health and safety in building strategies.

Rami Kaushal, Managing Director, Consulting & Valuation, India, Middle East & Africa, said, “The evolving educational landscape is driving a paradigm shift in the real estate industry. India’s large talent pool, coupled with the country’s emergence as a global destination, fits well with the current trajectory of the real estate sector. “Some of the proactive policies undertaken by the government will continue to drive demand for high-quality education properties, strengthening the investment ecosystem that has already gained significant momentum.”