India’s higher-education ecosystem is entering what ANAROCK Capital describes as an Academic Real Estate Supercycle, with nearly 2.7 billion square feet of academic infrastructure across 30,000 acres expected to be developed over the next decade to accommodate rising enrolments and policy-driven expansion.
According to ANAROCK Capital’s report titled “The Academic Real Estate Supercycle,” the sector may require approximately USD 100 billion in academic infrastructure investment, excluding land acquisition and student housing, to meet future demand driven by demographics, globalisation of education, and regulatory reforms.
Academic Real Estate Supercycle Driven by Enrolment Growth and Policy Targets
Increasing enrolments supported by India’s large youth population, rising aspirations, Gross Enrolment Ratio (GER) headroom, and policy ambitions are accelerating demand for academic infrastructure.
India’s higher-education enrolments increased from 27 million in 2010-11 to 45 million in 2022-23. The National Education Policy (NEP) 2020 aims to raise GER to 50% by 2035, which would require approximately 25 million additional seats.
Also Read: Workplaces 2025: India to Host 2,400 GCCs and 2.8 Million Jobs by 2030, Says FICCI-ANAROCK
Shobhit Agarwal, CEO – ANAROCK Capital, said: “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.”
He added: “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.”
The report highlights that India’s higher-secondary pipeline has expanded significantly, with GER rising from 19.5% in 2010-11 to 62.3% in 2021-22.
Growth has been particularly strong among girls, with GER increasing 3.3 times from 19.8% in 2001-02 to 66% in 2021-22, compared to 2.4 times growth among boys.
Institutional capacity has also expanded. The number of universities grew from 760 in 2015 to 1,338 in 2025, while Higher Education Institutions (HEIs) increased from 51,534 to 70,018. Despite this growth, infrastructure remains insufficient to meet future demand.
Academic Real Estate Supercycle: Landmark Regulation Opens India to Foreign Universities
Regulatory reforms are playing a major role in shaping the Academic Real Estate Supercycle, particularly the Foreign Higher Education Institutions (FHEI) Regulations introduced in 2023, which allow global universities to establish independent campuses in India.
Aashiesh Agarwaal, SVP – Investment Advisory, ANAROCK Capital, said: “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.”
Also Read: ANAROCK PMES Debuts with 42 Active Client Contracts; Targets ₹300 Cr Revenue by FY28
Several state governments have introduced supportive initiatives:
- Uttar Pradesh: Stamp duty exemptions and capital subsidies for HEIs
- Gujarat GIFT City: Dedicated international campus framework with shared academic infrastructure
- Maharashtra: A 250-acre “Educity” near Navi Mumbai International Airport, with commitments from five Foreign Higher Education Institutions
Aashiesh Agarwaal added: “Three global universities – including Southampton, Wollongong, and Deakin from the UK and Australia – have already commenced operations in India.
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.”
Academic Real Estate Supercycle: Infrastructure Gap Requires Coordinated Investment
The report states that incremental demand for 25 million seats translates into approximately 2.7 billion square feet of built-up academic space across nearly 30,000 acres, reinforcing the scale of the Academic Real Estate Supercycle.
The estimated USD 100 billion investment requirement covers academic facility development alone.
Aashiesh Agarwaal noted: “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.”
He added: “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.”
Academic Real Estate Supercycle: Investment Inflection Point in Higher-Education Infrastructure
The academic real estate supercycle report identifies several structural drivers shaping India’s higher-education expansion:
- Sustained demand driven by aspirations and affordability
- Domestic supply remaining structurally insufficient
- Outbound student flows representing a substitution opportunity
- Underpenetrated inbound student market
- Entry of global universities signalling confidence
- Policy reforms enabling institutional investment pathways
Currently, 1.34 million Indian students study abroad, while India captures less than 1% of globally mobile students despite having one of the world’s largest education ecosystems.
Only 11 Indian institutions feature in the global top 500 university rankings, compared to 74 in the US, 48 in the UK, 28 in Australia, and 19 in Canada.
Over the next decade, policy direction, demographic shifts, and institutional reforms are expected to shape how India’s higher-education sector evolves, positioning academic infrastructure development as a major investment opportunity.
