Developers Eye Gains as India's Private Education Demand Grows
New Delhi: India is expected to need around 1.5 billion square feet of additional private education infrastructure by FY35, a report released on Friday has said. The projection points to significant business potential for real estate developers and institutional investors.
The report, prepared by CBRE South Asia, links this demand to several structural drivers. These include India's large youth population, rising school and college enrolments, the growing presence of private players in education, and an increasing preference for quality learning environments.
Of the overall requirement, roughly 0.9 billion square feet is expected to come from private K-12 schools. Private higher education institutions, which operate without government assistance, are projected to account for about 0.4 billion square feet.
Institutional investors are showing growing interest in premium K-12 platforms, particularly in affluent urban markets where operators are pursuing large-scale growth. The report suggests that this trend is drawing more capital toward education real estate.
The report also highlights a structured operating company and property company model, which keeps real estate ownership separate from academic activities. Investors are exploring this framework because it could allow developers and property owners to earn through leasing or revenue sharing, while supporting the broader expansion of education infrastructure.
Anshuman Magazine, Chairman and CEO of CBRE for India, South East Asia, the Middle East and Africa, said that as private education providers widen their footprint, scalable infrastructure and operating models can contribute to long-term growth. He noted that partnerships between developers and established education operators could play an important role in meeting the demand.
The geographic reach of education infrastructure is expanding as well. Large metropolitan areas already have organised private schools and higher education institutions, but several Tier-II cities are now attracting attention from investors. Educational institutions are looking at regional markets for new opportunities.
Rami Kaushal, Managing Director of Consulting and Valuation Services for India, the Middle East and Africa at CBRE, said that established education hubs and rising cities with large student populations present strong expansion opportunities. He added that the success of a project will depend on its location, the suitability of its infrastructure, and whether developers are partnering with dependable education operators.