According to a report by Knight Frank and Berkadia, India currently faces a significant shortfall in its healthcare real estate. The country needs an additional 2 billion square feet of space to meet the needs of its existing population, which stands at 1.42 billion. This need is further underscored by the deficit of 2.4 million beds required to reach the standards set by the World Health Organization (WHO).
Comparisons with Global Standards
India’s current bed-to-population ratio is at 1.3 per 1,000, which is considerably lower than the WHO’s recommendation of 3 per 1,000. In comparison, countries like Japan, China, the USA, and the UK have much higher ratios, indicating a substantial gap in healthcare infrastructure in India.
Growth of Healthcare Market in India
The Indian healthcare market has seen rapid growth, with its size estimated at $372 billion in 2022, a significant increase from $73 billion in 2012. This growth rate, averaging 18% annually, was further accelerated by the pandemic. Additionally, India ranks 10th out of 46 global destinations for medical tourism, which adds to the demand for healthcare infrastructure.
Investment Opportunities
Post-pandemic, the healthcare sector has emerged as a key area for investment, especially for long-term income-generating assets. The Knight Frank’s Attitudes Survey indicated that almost one-fourth of Indian ultra-high net worth individuals plan to invest in healthcare-related assets in 2023, recognizing the sector’s potential