India will require nearly 1–1.5 billion square feet of additional private education infrastructure by FY2035, generating substantial opportunities for real estate developers and institutional investors, according to a report released on Friday, 30 October 2026 by CBRE South Asia. The demand projection underscores the scale of investment the private education sector may need to absorb over the next decade.

Key Demand Drivers

The surge in required space is underpinned by India's large youth cohort, rising school and college enrolments, increasing private-sector participation, and growing appetite for quality education, according to the CBRE report. Of the total projected incremental demand, approximately 0.9 billion square feet would be absorbed by private unaided K–12 schools, while private unaided higher education institutions would account for around 0.4 billion square feet.

Investor Interest and Emerging Models

The report highlighted growing institutional investor interest in scalable premium K–12 platforms, particularly in affluent urban markets. Investors are reportedly evaluating structured operating company–property company (OpCo-PropCo) models, which separate real estate ownership from academic operations. According to the report, 'Such arrangements can provide developers and property owners with lease or revenue-sharing income opportunities while supporting the expansion of education infrastructure.'

Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, noted that scalable infrastructure and operating models will be central to long-term growth. 'Partnerships between developers and established education operators could play an important role in meeting this demand,' he said.

Geographic Diversification Beyond Metros

India's education infrastructure landscape is also diversifying geographically. Established metropolitan markets continue to anchor organised private schooling and higher education, but select tier-II cities are attracting investor interest as institutions evaluate expansion into regional markets. This marks a meaningful shift from the historically metro-centric model of private education investment.

Rami Kaushal, Managing Director, Consulting and Valuation Services, India, Middle East and Africa, CBRE, cautioned that project viability in emerging cities will hinge on location suitability, infrastructure quality, and the strength of operator partnerships. 'Established education hubs and emerging cities with strong student populations offer opportunities for expansion, but project viability will depend on location, infrastructure suitability and partnerships with credible education operators,' he said.

What This Means for Developers and Policymakers

For real estate developers, the findings signal a structural long-term demand cycle that extends well beyond commercial office or residential segments. For policymakers, the data points to the private sector increasingly filling a capacity gap that public education infrastructure alone cannot address. Notably, the 1–1.5 billion square feet figure rivals the total Grade-A office stock currently in existence across India's top six cities, offering a sense of the magnitude involved. As India's working-age population peaks in the coming decade, the quality and availability of education infrastructure will have direct consequences for human capital formation and economic productivity.