India faces severe healthcare real estate shortage; needs 2bn sqft
India is facing an acute shortage in healthcare real estate, with a need for an additional two billion square feet to accommodate the current population's needs, according to a global healthcare report by Knight Frank. The country's bed-to-population ratio is a mere 1.3 beds per 1,000 people, indicating a deficit of 1.7 beds per 1,000 individuals. To address this issue, India requires an extra 2.4 million beds for its 1.42 billion population.
Healthcare real estate investment grows globally
The healthcare industry has seen substantial growth worldwide, with global investments in healthcare real estate reaching $38 billion, making up about 4.3% of total global real estate financing. In India, the healthcare sector has grown at an impressive annual average rate of 18%, with the pandemic further highlighting the need for improved infrastructure and service delivery. Shishir Baijal, Chairman and Managing Director of Knight Frank India, stressed the urgent need for a major boost in India's healthcare infrastructure.
Ultra-high net worth individuals eye healthcare investments
Knight Frank's Attitudes Survey revealed that nearly a quarter of Indian ultra-high net worth individuals are interested in investing in healthcare-related assets by 2023. Baijal explained that meeting the growing healthcare demands of the population would require almost doubling the current real estate capacity. He also noted that, in the wake of the COVID-19 pandemic, healthcare has become a mainstream investment opportunity for those seeking long-term income-generating assets.
