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India’s education sector to drive major real estate demand by 2035

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New Delhi

India’s education sector is projected to create over 4 billion square feet of real estate demand by 2035, according to a report from CBRE. The education market is anticipated to reach a value of $313 billion by 2030, spurred by supportive government policies, increased urbanization, and higher private investments.

Student enrollments in K-12 and higher education are expected to increase by 1.2 times, surpassing 360 million by 2035. This growth will significantly boost the need for educational spaces to accommodate rising student numbers. Currently valued at $117 billion, the education sector includes approximately 265 million students in 1.49 million K-12 schools. In addition, India’s higher education system has around 43 million students across nearly 59,000 institutions.

The sector’s growth is also fueled by an urban population projected to reach 675 million by 2035, leading to high demand for accessible and quality educational facilities. Policies like the National Education Policy have attracted private investment, with Foreign Direct Investment (FDI) in education nearly doubling from 0.7% in 2019 to 1.4% by 2023. Since 2000, the sector has drawn $9.5 billion in FDI equity, most of it within the last four years. Education-focused real estate is evolving, with designs now prioritizing collaborative, adaptable spaces and sustainability. Anshuman Magazine, CEO of CBRE India, highlighted a trend among institutions toward flexible, inclusive, and safe spaces. As educational needs grow, investments in eco-friendly, flexible infrastructure are likely to surge across Tier I, II, and III cities, backed by progressive urbanization policies.

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