India may need 2.7 bn sq ft of new academic infrastructure by 2035

India's higher education sector could require nearly 30,000 acres of new campus land and 2.7 billion sq ft of academic infrastructure by 2035, driven by rising enrolments and policy ambitions

Nearly 30,000 acres of new campus land and about 2.7 billion square feet of academic infrastructure are expected in India by 2035 to meet surging student demand, positioning India’s higher education sector as the largest real estate opportunity globally.

 

What is driving demand for academic infrastructure in India?

 

According to a report by real estate consultancy Anarock, India’s targeted gross enrolment ratio of 50 per cent by 2035 will require roughly 25 million additional seats and about $100 billion in construction-led investment for academic facilities alone, excluding land acquisition and student accommodation infrastructure.

 

“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,” the report stated.

   

How is policy recognising the infrastructure gap?

 

Anarock Capital Chief Executive Officer Shobhit Agarwal said the provision in this year’s Union Budget to support the creation of five university townships reflects recognition of the gap in academic infrastructure.

 

How has the higher secondary pipeline expanded?

 

The demand comes even as India has witnessed an expansion in its higher secondary pipeline, with overall higher secondary gross enrolment ratio increasing from 19.5 per cent in 2010–11 to 62.3 per cent in 2021–22.

 

This expansion is particularly pronounced among girls, whose enrolment ratio has grown 3.3 times, from 19.8 per cent in 2001–02 to 66 per cent in 2021–22.

 

Is current capacity sufficient to meet future needs?

 

“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 have grown from 51,534 to 70,018,” the report added.

 

However, it said existing infrastructure remains insufficient to meet both policy ambitions and demographic momentum.

 

What has been the impact on outbound student mobility?

 

This has led to India becoming one of the world’s largest contributors to the global pool of internationally mobile students at 1.34 million, underscoring demand leakage due to insufficient domestic capacity.

 

How are new regulations changing the landscape?

 

Following new University Grants Commission regulations, foreign higher education institutions ranked within the global top 500 can now establish campuses in India without affiliating with domestic universities.

 

“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,” said Aashiesh Agarwaal, senior vice president for investment advisory at Anarock Capital.

 

Which states are courting foreign universities?

 

Several foreign higher education institutions have already announced interest in entering India, with state governments complementing the opening through 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.

 

Similarly, Maharashtra has anchored its strategy around a 250-acre Educity near the Navi Mumbai International Airport, securing commitments from five foreign higher education institutions.