India’s higher-education sector is poised for significant growth, as outlined in the ANAROCK Capital report ‘The Academic Real Estate Supercycle.’ With plans for nearly 30,000 acres of new campus land and 2.7 billion square feet of educational infrastructure to accommodate increasing student enrolments rising from 27 million in 2010-11 to 45 million in 2022-23 there is an urgent need for about USD 100 billion in investments for academic facilities. The National Education Policy (NEP) 2020 aims for a Gross Enrolment Ratio (GER) of 50% by 2035, necessitating 25 million additional seats. The GER for higher-secondary education has surged from 19.5% in 2010-11 to 62.3% in 2021-22, especially among girls.
India, Potentially Enhancing
Despite the rise in institutions from 760 universities in 2015 to 1,338 in 2025 current infrastructure is inadequate to meet the demand. The recent FHEI Regulations allow top-ranked global universities to establish independent campuses in India, potentially enhancing the educational landscape India’s higher education sector is undergoing a fundamental transformation, and real estate is emerging as one of its strongest growth pillars. According to ANAROCK Capital, the higher education ecosystem represents a massive real estate opportunity estimated at nearly 2.7 billion square feet over the coming years. This opportunity is not limited to traditional university campuses but spans.
Academic buildings, student housing, faculty residences, research parks, innovation hubs, and mixed-use education townships. With India aiming to become a global education hub, demand for quality physical infrastructure is rising rapidly across Tier I, Tier II, and even Tier III cities The growth of India’s young population is one of the strongest drivers behind this expansion. With more than half of the country’s population below the age of 25, enrolments in higher education institutions are steadily increasing. Government initiatives to improve Gross Enrolment Ratio (GER), coupled with rising aspirations among middle-class families, have resulted in a surge in demand for colleges.
Demographics Are Shaping Property
Universities, and skill-based institutions. This demographic momentum directly translates into sustained demand for educational real estate, creating long-term visibility for developers and institutional investors. For a broader view of how demographics are shaping property demand Policy reforms have further strengthened the investment case for education-led real estate. The National Education Policy (NEP) 2020 encourages multidisciplinary institutions, foreign university collaborations, and private sector participation. These reforms are increasing the scale and sophistication of campus developments, requiring larger land parcels and modern infrastructure.
Unlike conventional commercial real estate, education assets benefit from stable occupancy cycles and predictable demand, making them attractive for patient capital. Developers are increasingly aligning their projects with education operators to create purpose-built campuses that meet global standards Private universities and deemed institutions are playing a pivotal role in unlocking this 2.7 billion sq ft opportunity. Over the past decade, private players have expanded aggressively, particularly in states with investor-friendly policies such as Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh, and Gujarat. These institutions are not only building academic blocks but also investing in hostels.
Universities Function As Self Contained
Sports complexes, auditoriums, medical facilities, and faculty housing. Such integrated developments enhance campus life while significantly increasing the overall built-up area per institution. This trend aligns with global benchmarks, where universities function as self-contained urban ecosystems rather than standalone academic buildings Student housing has emerged as one of the most promising sub-segments within the higher education real estate landscape. India has a significant shortage of quality, organised student accommodation, especially near major education clusters. As enrolments rise and mobility increases, demand for professionally managed.
Hostels and co-living spaces is accelerating. Institutional investors and real estate funds are now actively exploring student housing platforms due to their stable cash flows and resilience during economic cycles Another critical component of this opportunity is research and innovation infrastructure. With India positioning itself as a knowledge and innovation economy, universities are expanding into research parks, incubation centres, and industry-academia collaboration zones. These facilities require specialised real estate, including laboratories, data centres, and flexible office spaces. Such developments often attract global corporations, startups, and venture capital.
Academic Institutions From An investment
Further enhancing the commercial viability of education-linked real estate. Internationally, this model has proven successful in regions like Silicon Valley and Cambridge, and India is now replicating similar ecosystems around major academic institutions From an investment standpoint, higher education real estate offers diversification benefits compared to traditional office or retail assets. Lease tenures tend to be long, tenant stickiness is high, and demand is relatively insulated from short-term economic volatility. ANAROCK Capital highlights that education assets are increasingly attracting alternative investment funds, family offices, and long-term institutional capital.
Public-private partnership models are also gaining traction, allowing governments to leverage private expertise while ensuring affordability and access Geographically, the opportunity is expanding beyond metropolitan cities. Tier II and Tier III cities are witnessing rapid growth in higher education institutions due to lower land costs, improving connectivity, and regional demand. Cities such as Indore, Jaipur, Coimbatore, Kochi, Bhubaneswar, and Lucknow are emerging as prominent education hubs. This decentralisation not only reduces pressure on metro infrastructure but also opens new frontiers for real estate development in previously under-served markets.
Recent Regulatory Relaxations Allowing
Globally, India’s higher education real estate opportunity is also attracting attention from foreign universities and international investors. Recent regulatory relaxations allowing foreign institutions to set up campuses in India could further accelerate demand for premium (India) academic infrastructure. Collaborations with global universities typically require world-class facilities, pushing design, sustainability, and technology standards higher. This shift is likely to elevate the overall quality of education real estate while creating opportunities for developers specialising in high-end institutional projects. More details on international participation can be explored through.
Sustainability and smart campus development are becoming central themes in new education projects. Institutions are increasingly adopting green building practices, energy-efficient designs, and digital infrastructure to enhance operational efficiency and student experience. Smart classrooms, IoT-enabled facilities, and sustainable mobility solutions are now integral to campus planning. These features not only reduce long-term costs but also improve asset value, making education real estate future-ready. Global best practices in sustainable campuses are well documented by organisations such as the World Economic Forum.
The 2.7 billion sq ft higher education real estate opportunity identified by ANAROCK Capital reflects a structural shift rather than a cyclical trend. Driven by demographics, policy reforms, private investment, and global integration, education-led real estate is set to (India) become a cornerstone of India’s property market. For developers, investors, and policymakers, this segment offers a rare combination of scale, stability, and social impact. As India strengthens its position as a global education destination, the physical infrastructure supporting this ambition will continue to expand, unlocking long-term value across the real estate ecosystem.
Q1. What does the 2.7 billion sq ft opportunity in higher education real estate include?
It includes universities, colleges, student housing, faculty residences, research parks, and integrated campus developments.
Q2. Why is higher education real estate attractive to investors?
Because it offers long-term demand, stable occupancy, and lower volatility compared to traditional commercial assets.
Q3. Which cities are leading this growth in India?
Apart from metros, Tier II cities like Indore, Jaipur, Kochi, and Coimbatore are emerging as major education hubs.
Q4. How does NEP 2020 impact education real estate?
NEP 2020 encourages multidisciplinary institutions and private participation, increasing demand for modern campus infrastructure.
Q5. What role does student housing play in this opportunity?
Student housing addresses a major supply gap and offers stable rental income, making it a key sub-segment.
