India’s Education Boom to Drive 4 Billion Sq. Ft. Real Estate Demand by 2035: CBRE Report

Real Estate

In a recent report released by Coldwell Banker Richard Ellis (CBRE), it has been stated that over 4 billion of real estate demand will be created in the education sector of India by 2034-35. The growth unfurls due to useful policies provided by the government, increased urbanization along with private funds and equity growing which all place education as an important driver in the real estate scenario of the country. According to CBRE’s Analyst, the expansion of education market in India will bring in USD 313 billion success stories by 2030, indicating the market potential is huge.

A 1.2 rise in student enrollments across K-12 and higher education was estimated in the report, total enrollments are expected to be more than 360 million by 2035. The increased student numbers are expected to increase the need for educational facilities which will in turn necessitate aggressive growth and development of educational institutions. Currently valued at USD 117 billion, India’s education sector is well on course to meet expectations, witnessing primarily the K-12 segment growth with around 1.49 million schools to about 265 million children.

Anshuman Magazine, who is the Chairman and Chief Executive Officer of CBRE India, South East Asia, Middle East and Africa, noted all assets having a quality placement is now a game changer across geographies, as educational institutions have started getting more and more into versatile learning spaces, open designs, and functional safety.

There is a need for the various stakeholders to adopt these trends in order to transform the educational infrastructure in India.

The higher education of India is one of the largest in the world, with 43 million students currently studying in almost 59000 institutions. This sector too is experiencing growth because the urban population is also expected to increase to 675 million in 2035.The rising demand for accessible and high-quality educational facilities highlights the country’s expanding real estate needs.

The report highlights a surge in private investments, driven by the government’s National Education Policy and urbanization initiatives. Foreign Direct Investment (FDI) in education has nearly doubled, reaching 1.4% in 2023, with a total of USD 9.5 billion in FDI equity attracted since 2000—two-thirds of which has occurred in the last four years.

Moreover, education-focused real estate is evolving to include adaptive, sustainable spaces that promote collaborative learning and incorporate energy-efficient designs. The demand for land in Tier I, II, and III cities is anticipated to rise, fueled by urban expansion and supportive local policies. Rami Kaushal, Managing Director of Consulting & Valuation Services at CBRE for India, the Middle East, and Africa, stated, “Government policies are poised to further stimulate demand for quality educational real estate assets, enhancing a rapidly maturing investment ecosystem.”