India requires an additional two billion square feet of healthcare real estate to fulfil the existing population's need as the country’s existing bed to population ratio is 1.3 beds per 1,000 people, according to a Knight Frank global healthcare report.
The real estate consultancy in its report stated that global investments in healthcare real estate have reached $38 billion and it accounted for approximately 4.3 percent of total global real estate financing. India’s health care industry has grown at an annual average rate of 18 percent and got accelerated with pandemic as it challenged the healthcare sector by stretching the need for infrastructure and service delivery.
“India is currently facing a deficit of two billion square feet of healthcare space to cater to its current population base of 1.42 billion people. There is a deficit of 1.7 beds per 1,000 people and to cater to the existing population, there is an additional requirement of 2.4 million beds. This disparity provides an opportunity for public and private players, to expand their footprint in the healthcare industry in India,” the report stated.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said that the challenge of India’s population to bed ratio, coupled with increasing population, underscores the pressing need for significant enhancement in the country’s healthcare infrastructure.
“Addressing this demand necessitates nearly doubling the current real estate capacity to adequately meet the expanding healthcare requirements of the population. Post the pandemic, healthcare ranks amongst the mainstream avenues for investors looking for investments into long income generating assets,” Baijal said in a statement.
He said that according to Knight Frank’s Attitudes Survey, almost one-fourth of the Indian ultra-high net worth individuals had cited to invest in healthcare related assets in 2023.
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