India could require between 1 billion and 1.5 billion square feet of additional private education infrastructure by the financial year 2034–35, driven by rising student enrolment, increasing private-sector participation and growing demand for quality education, according to a report by real estate consultancy CBRE. 

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The report, Beyond Core: A 2035 View of India’s Alternate Sectors – Part I, estimates that private unaided schools offering education from kindergarten to Class 12 could account for approximately 900 million square feet of the additional requirement. Private unaided higher education institutions may need another 400 million square feet. 

India’s large young population and rising educational aspirations are expected to support this demand. According to the report, enrolment in private unaided schools could increase from 99 million in 2025–26 to 111 million by 2034–35. Enrolment in private unaided higher education institutions is projected to rise from 17 million to 23 million over the same period. 

The projected expansion could create opportunities for real estate developers, education operators and institutional investors. Investors are showing interest in scalable private school networks, particularly in urban markets, while some tier-II cities are also attracting attention as education providers consider regional expansion. 

One model gaining attention is the operating company–property company (OpCo–PropCo) structure. Under this arrangement, the entity operating a school or educational institution is separate from the company owning its property. Depending on the agreement, this can help education providers expand while giving property owners opportunities to earn rental income or revenue-linked returns.

Higher education infrastructure could also receive a boost from international universities establishing or expanding campuses in India. However, CBRE notes that education real estate projects require careful assessment, with their viability depending on location, infrastructure suitability and partnerships with credible education operators. 

The forecast points to a substantial potential market for education-related real estate over the next decade. Turning that projected demand into functioning campuses and classrooms, however, will require investment, effective planning and sustainable operating models. Expanding physical infrastructure will also need to go hand in hand with quality teaching, affordability and access to education.