India is expected to require approximately 1.0–1.5 billion sq. ft. of additional private education infrastructure by FY35, driven by rising enrolments, increasing private-sector participation and demand for quality education, according to a report by CBRE South Asia Pvt. Ltd.
The report, titled Beyond Core: A 2035 View of India’s Alternate Sectors – Part I, estimates incremental infrastructure demand of about 0.9 billion sq. ft. from private unaided K–12 schools and around 0.4 billion sq. ft. from private unaided higher education institutions.
Investors explore education real estate
The opportunity is supported by India’s large youth population, rising educational aspirations and the need to expand capacity across school and higher education segments.
CBRE said institutional investors are showing interest in scalable premium K–12 platforms, particularly in affluent urban markets. Investors are also evaluating operating company–property company (OpCo–PropCo) models, which separate property ownership from academic operations.
These structures can provide developers and property owners with lease or revenue-sharing income while enabling education operators to expand their institutional networks.
Tier-II cities gain investor attention
India’s education infrastructure market is diversifying geographically. Established metropolitan centres continue to anchor organised private schooling and higher education, while select tier-II cities are attracting investor interest as institutions explore regional expansion.
The entry and planned expansion of international universities, supported by an evolving regulatory framework, could create further demand for academic infrastructure in established commercial and institutional locations.
Partnerships key to scalable development
“India’s growing requirement for education infrastructure presents opportunities for real estate developers and institutional investors. As private education providers expand their presence across markets, scalable infrastructure and operating models can support long-term growth,” CBRE, Chairman and CEO for India, South-East Asia, Middle East and Africa, Anshuman Magazine said.
Partnerships between developers and established education operators could play an important role in meeting this demand,” he said.
Management comment
“Education real estate requires a selective, market-led investment approach, given the differing demand dynamics and operating requirements across K–12 and higher education,” said CBRE, Managing Director, Consulting and Valuation Services, India, Middle East and Africa, Rami Kaushal.
Established education hubs and emerging cities with strong student populations offer opportunities for expansion, but project viability will depend on location, infrastructure suitability and partnerships with credible education operators,” he said.
The report said aligning location, infrastructure requirements and partnerships with established education operators would be important for building scalable education real estate portfolios.