Education push is reshaping institutional real estate in India, here's how

India’s push to modernise its education system is creating new opportunities for the real estate sector, according to a report by ANAROCK Capital. The report says large amounts of land and academic infrastructure will be needed to meet the goals of the National Education Policy (NEP) 2020.Titled The Academic Real Estate Supercycle, the report estimates India will require an additional 2.7 billion square feet of academic built-up space, as cited by PTI.This expansion could take up nearly 30,000 acres of new campus land across the country, signalling a shift in how institutional land is developed.New development trends are emerging in the education sector, with the government supporting the concept of “university townships”, large zones designed to integrate academic institutions with residential and support facilities for students and staff.The report estimates that the required construction could translate into about $100 billion in investment for academic facilities such as classrooms and laboratories. This figure excludes land acquisition and student housing, which would push the total investment higher.It adds that the demand is driven by rising student enrolments and new government regulations."Meeting this demand will necessitate approximately USD 100 billion in investment for academic facilities alone, excluding land acquisition and student accommodation infrastructure," the report stated.

The report says the higher education sector is becoming a key focus for property investors and developers. With the government targeting a doubling of college enrolments by 2035, demand for quality academic space is expected to rise.Describing the situation as a unique global event, the report noted that the "scale of expansion, underpinned by demographic momentum, rising enrolments, globalisation of education, and landmark regulatory reforms, represents arguably the largest higher-education build-out market globally."The report also states that real estate developers are likely to play a central role in building university townships and providing rental facilities for foreign universities entering India. It adds that this shift could open a new growth avenue for the property market over the next decade.