India needs 2.6 bn sq ft healthcare space

Property Pulse

India will require an additional 2.6 billion sq ft of healthcare real estate by 2035, alongside 2.9 million additional hospital beds, to bridge the gap between existing capacity and the current global average, according to a report by CBRE South Asia.

India has approximately 1.6 hospital beds per 1,000 people, compared with the global average of 3.3. The country's healthcare real estate stock stood at around 2.1 billion sq ft in 2025, indicating the scale of infrastructure expansion required to meet rising demand.

Southern states hold an advantage

Andhra Pradesh, Telangana, Tamil Nadu, Kerala and Karnataka have comparatively stronger healthcare infrastructure than several other states. Karnataka, Kerala, Tamil Nadu and Telangana also have relatively higher household incomes, supporting opportunities for super-speciality hospitals and specialised treatment centres. Chhattisgarh, Odisha, Madhya Pradesh and Jharkhand face comparatively lower hospital-bed availability relative to their disease burden, pointing to potential demand for secondary and tertiary healthcare facilities.

Demand extends beyond hospitals

Diagnostic centres, day-care surgery facilities, rehabilitation clinics, eye-care centres, IVF clinics and preventive health facilities are emerging as additional segments for healthcare real estate investment. Medical office buildings, which accommodate multiple healthcare providers under one roof, could also gain traction. Such facilities can combine diagnostic laboratories, dental clinics, rehabilitation services and specialist consultations, improving space utilisation and patient access. The report also points to opportunities for healthcare operators to acquire existing hospitals and use established infrastructure rather than develop facilities from scratch, subject to applicable approvals.

India's healthcare capacity gap is expected to create investment opportunities across hospitals, specialised medical centres and integrated healthcare campuses through 2035.

Healthcare Capacity

Infrastructure.

• India had 1.6 beds per 1,000 people.
• Global average stood at 3.3 beds.
• Healthcare stock reached 2.1 billion sq ft.
• Additional capacity needs span multiple states.
• Medical office buildings remain an emerging segment.
•        Specialised centres broaden healthcare property demand.