New Delhi: CBRE published it’s first-ever report on India’s healthcare sector, titled The Evolving Indian Healthcare Ecosystem: What It Means for the Real Estate Sector’. The report highlights the trends expected to redefine the healthcare landscape and delivery in the country in the coming times. The report states that India has one of the lowest
bed-to-population ratios in the world, which is indicative of the infrastructure gap as well as the vast growth potential of this segment.
The report ran an analysis to identify this growth potential to understand how much real estate space hospitals would require to ensure equitable distribution of health services in the country by 2030. As per the report, India will require an additional 1.3 billion sq. ft. of healthcare space to improve the infrastructure disparity.
Anshuman Magazine, Chairman & CEO, CBRE - India, South-East Asia, Middle East & Africa, shared, “Healthcare in India is being driven by rising income levels, growing health awareness, better access to medical insurance amidst increasing government spending on healthcare, an ageing population and the changing nature of epidemiology. COVID-19 underlined the importance of this segment, thereby amplifying investor interest. Moreover, the pandemic has ensured that in addition to health facilities, other functions too have entered the mainstream to forge a new ecosystem. These include telehealth / healthtech, deeper penetration of medical insurance, rise of quality home healthcare services, focus on patient experience and hospital environment, and transition from disease cure to prevention and wellness.”
Implications for different real estate segments:
Land (hospital chains, clinics): As mentioned previously, India is expected to require an additional 1.3 billion sq. ft. of space to match global bed-to-population standards. Therefore with further expansion by hospital players, a spurt in demand for land across the country is expected.
Industrial and logistics real estate: Due to specific storage needs of life-saving pharmaceuticals and vaccines, the demand for warehouse spaces will grow manifold. As access to healthcare increases, this demand could spread to Tier II and III regions. Owing to the rising demand for medical products and pandemic-related difficulties, reshoring of medical supply chains is also likely.
Wellness-driven med-tail evolution: The rising emphasis on experience and customer happiness is driving healthcare and wellness companies to retail settings including shopping malls and big box retail formats. The trend of med-tail’ is expected to widen in the future to include aesthetic dermatology, dental treatment, and other services.
Impact on office and residential sectors: The emphasis on experience may result in a reconfiguration of hospital spaces, which could result in corporate operations such as administration being moved away from the main campus. This would generate demand for office space to accommodate these functions.
Read more at: https://health.economictimes.indiatimes.com/news/industry/india-will-require-1-3-bn-sqft-of-additional-healthcare-space-by-2030-cbre-report/91963860