As per the recent surveys, the Indian education sector is estimated to touch the 100 billion US dollar mark. As of 2018, there are around 40 thousand colleges and more than 900 universities in the country. The sustainable development schemes and policies of India give much importance to the educational sector. The Smart City mission is incomplete without the up-gradation of the educational institutes. The real estate developers have started to emphasize on adding this sector into their reality plans. The education business has attracted major investments by the leading players in the realty sector. The opportunities in education offer the unparalleled possibility for investment in regulate and non-regulated market. For the down-sliding real estate market, the educational land and properties are becoming as a savior. With the recent national initiatives for the educational vertical, the country has witnessed a significant increase in the market share of the education industry. There are schemes which have motivated investments from non-resident Indians (NRIs) and also opened doors for foreign educational institutes. Policies like 100% FDI via automatic route is allowed in the education sector. Along with this, the National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill have opened up umpteen growth opportunities for the educational industry and real estate in parallel.
As per the survey by DTZ India, the demand for real estate would rise up to 5500 million square feet to achieve a GER of 30% by 2020 from the higher education sector. The opportunities for the real estate would include the development of educational institutes, hostels, student housing, retail spaces, and etc as the support services. Several developers have started to build amenities like staff-housing, recreational facilities, sports arenas, and etc which add additional revenue options. The construction opportunities are not restricted to the above areas but also to pre-school education services, primary, secondary and high schools. The government introduced exclusive benefits and incentives for the institutions developed for special students. In parallel, investment in vocational education services would increase the capacities of the current schools and give a boost to the employment index of the state and the country. The government promotes investment in educational development by allocating land with a hassle-free process, provide financial support, tax exemption and insurance support.
The recent trend of co-working spaces have brought exponential growth in the real estate market. With infinite benefits in investing in such spaces, the new buzz-word in the market these days is “co-living” spaces. With the advancements in cities like Bangalore, Mumbai, and etc in the educational vertical, the mobility of the students has increased. This floating population of students needs houses to live in keeping budget, hygiene, and security into considerations. The paying guest market today is unorganized and is not well monitored. Hunting for a room in a different city is always the scariest part in a student’s life. The real estate developers have focused this interest to student-housing and co-living spaces to cater to this need.
The future prospects of education and the realty market have great scope, opportunities, and potential. The REITs scheme could also be used for investing in educational centric realty options. The year 2020, could just witness a grand revolutionary change in the real estate market of India.