India’s higher-education sector is emerging as one of the world’s largest institutional real estate opportunities, according to ANAROCK Capital’s report “The Academic Real Estate Supercycle.” Nearly 30,000 acres of new campus land and 2.7 billion square feet of academic infrastructure will be needed to meet surging student demand, driven by demographic momentum, rising enrolments, and landmark regulatory reforms.
The National Education Policy (NEP) 2020 targets a Gross Enrolment Ratio (GER) of 50% by 2035, requiring ~25 million new seats. Meeting this demand will necessitate USD 100 billion in construction-led investment for academic facilities alone, excluding land acquisition and student housing.
India’s enrolments have already surged from 27 million in 2010-11 to 45 million in 2022-23, supported by higher-secondary GER growth from 19.5% to 62.3% over the past decade. Notably, female GER has grown 3.3x, substantially outpacing male enrolment growth.
The sector’s expansion is also being shaped by FHEI Regulations (2023), which permit foreign universities to establish independent campuses in India. Already, Southampton, Wollongong, and Deakin have commenced operations, while 13 more institutions including Lancaster, Liverpool, Illinois Institute of Technology, and Instituto Europeo di Design have announced upcoming campuses. State governments are supporting this momentum with initiatives such as Uttar Pradesh’s stamp duty exemptions, GIFT City’s international campus framework, and Maharashtra’s 250-acre Educity near Navi Mumbai Airport.
Shobhit Agarwal, CEO – ANAROCK Capital, said: “India’s higher-education enrolments are surging, and bridging the infrastructure gap will require unprecedented investment. The Union Budget 2026 provision for five university townships reflects recognition of this need.”
The report highlights that while some foreign entrants may adopt asset-light strategies by leasing institutional space initially, overall investment demand will remain high, shifting capital requirements to landlords and developers.
With outbound student flows at 1.34 million annually and India capturing less than 1% of the global student market, the opportunity is immense. Over the next decade, policy direction, demographic shifts, and institutional reforms are expected to determine how India’s higher-education sector evolves, offering global investors and operators a rare chance to build strong positions in this expanding landscape.
