Beyond Core: A 2035 View of India's Alternate Sectors – Part One

India's real estate market is entering a new phase of diversification, with alternate sectors increasingly emerging as scalable real estate and investment opportunities. In the first edition of CBRE Research's Beyond Core series, we examine the structural demand drivers, evolving asset formats, operating models and investment considerations shaping three key sectors: Healthcare, Hospitality and Education.

Driven by demographic shifts, rising incomes, changing consumer preferences and growing institutional participation, these sectors are moving beyond niche opportunities and gaining strategic relevance within the broader real estate landscape. However, each segment has distinct demand drivers, operating dynamics and investment considerations, underscoring the need for sector-specific strategies and long-term partnerships.

Collectively, these sectors are projected to require more than 3.5 billion sq. ft. of additional real estate infrastructure by 2035, creating a significant opportunity for developers, operators and investors. Key findings from the report include:

• Healthcare: Approximately 2.6 billion sq. ft. of additional healthcare real estate may be required by 2035 to bridge capacity gaps and align with global benchmarks.
• Hospitality: The organised hotel sector may require ~190,000-210,000 additional keys, translating into ~120-125 million sq. ft. of incremental real estate demand by 2035.
• Education: Expanding enrolments and growing private participation could drive ~1.0-1.5 billion sq. ft. of additional private education infrastructure demand by FY2035.

Beyond sizing the opportunity, the report explores the demand drivers, real estate formats, operating models and investment trends shaping these sectors, helping stakeholders distinguish durable, scalable opportunities and make informed, market-led decisions as India's alternate real estate landscape evolves.

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