Mumbai, Feb 05: india’s higher-education sector is emerging as one of the world’s largest institutional real estate opportunities over the next decade, finds the ANAROCK Capital report ‘The Academic Real Estate Supercycle’. Nearly 30,000 acres of new campus land and approximately 2.7 billion square feet of academic infrastructure are set to be developed to meet surging student demand. This scale of expansion, underpinned by demographic momentum, rising enrolments, globalisation of education, and landmark regulatory reforms, represents arguably the largest higher-education build-out market globally.
Shobhit Agarwal, CEO – ANAROCK Capital, says, “India’s higher-education enrolments have surged from 27 million in 2010-11 to 45 million in 2022-23, driven by powerful demographic engines and rising household aspirations. The National Education Policy (NEP) 2020 targets a Gross Enrolment Ratio (GER) of 50% by 2035, requiring approximately 25 million additional seats.”
“Meeting this demand will necessitate approximately USD 100 billion in construction-led investment for academic facilities alone, excluding land acquisition and student accommodation infrastructure. We believe the provision in the Union Budget 2026 to support the creation of five university townships reflects a recognition of the gap in academic infrastructure.”
India’s higher-education sector is at a critical inflection point, the report notes. The country has witnessed a dramatic expansion in its higher-secondary (XI+XII) pipeline, with overall higher-secondary GER increasing from 19.5% in 2010-11 to 62.3% in 2021-22. This expansion is particularly pronounced among girls, whose GER has grown 3.3x – from 19.8% in 2001-02 to 66% in 2021-22 – substantially outpacing male GER growth of 2.4x during the same period.
Supporting this structural demand is India’s capacity expansion, which has seen universities increase from 760 in 2015 to 1,338 in 2025, while total Higher Education Institutions (HEIs) have grown from 51,534 to 70,018. However, current infrastructure remains insufficient to meet both policy ambitions and demographic momentum.
Landmark Regulation Opens India to Foreign Universities
Aashiesh Agarwaal, SVP – Investment Advisory, ANAROCK Capital, says, “After the FHEI Regulations that enable top-ranked global universities to establish independent campuses in India with their own degrees, full academic autonomy, and UGC oversight were announced in 2023, foreign higher-education institutions ranked within the top 500 globally can now establish campuses without affiliating with Indian universities if they demonstrate financial capability and create the needed physical infrastructure.”
Several state governments have complemented this opening with targeted initiatives –
- Uttar Pradesh has rolled out stamp duty exemptions and capital subsidies for higher education institutions
- GIFT City in Gujarat has created a dedicated international campus framework with shared academic infrastructure
- Maharashtra has anchored its strategy around a 250-acre ‘Educity’ near Navi Mumbai International Airport, securing commitments from five Foreign Higher Education Institutions.
“Three global universities – including Southampton, Wollongong, and Deakin from the UK and Australia – have already commenced operations in India,” adds Aashiesh Agarwaal. “An additional thirteen institutions, including Lancaster (UK), Liverpool (UK), Illinois Institute of Technology (US), and Instituto Europeo di Design (Italy), have announced upcoming campuses, signalling strong international confidence in India’s education market.”
Infrastructure Gap Requires Coordinated Investment
India’s infrastructure gap to accommodate this growth is substantial – incremental demand of 25 million seats translates into 2.7 billion square feet of additional built-up area over approximately 30,000 acres. The investment requirement is estimated at USD 100 billion for academic facility development alone.
“However, many new entrants – particularly private players and foreign universities – may initially adopt asset-light strategies, leasing space within existing or purpose-built institutional buildings before committing capital to owned campuses,” says Aashiesh Agarwaal. “This approach moderates upfront institutional capital expenditure but does not reduce overall investment demand; instead, the capital requirement shifts to landlords and developers who will deploy capital to create requisite physical infrastructure.”
Investment Inflection Point
India’s higher-education sector presents a rare convergence of favourable conditions:
- Demand expected to remain robust over the coming decade, driven by shifting aspirations and rising affordability
- Domestic supply is structurally insufficient to meet emerging demand
- Outbound student flows represent a multi-billion-dollar substitution opportunity
- Inbound potential remains underpenetrated and ripe for capture
- Global universities are entering now, signalling market confidence
- Policy shifts are opening new, institution-friendly pathways for growth and investment
Over the next decade, policy direction, demographic shifts, and institutional reforms are likely to determine how India’s higher-education sector expands and who participates in this growth. For global investors, operators, and education platforms, the current phase offers a meaningful opportunity to build strong positions in India’s evolving higher-education landscape.