In order to cater to its current population base of 1.42 billion, India needs 2 billion square feet of healthcare space, Global Healthcare Report, released by real estate consultancies Knight Frank and Berkadia said.

Notably, the country is facing a deficit of 2.4 million beds to achieve the standards set by the World Health Organization (WHO).

The report highlighted that India’s bed-to-population ratio, including both private and public facilities, is 1.3 per 1,000 which is less compared to WHO’s 3 per 1,000.

Amid rapid growth of India’s healthcare market, this shortfall is crucial. In 2022, the size of the Indian healthcare market was estimated to be $372 billion, significantly higher than $73 billion in 2012.

The bed-to-population ratio is much lower than 13 in Japan, 4.3 in China, 2.9 in the United States of America (USA) and 2.5 in the United Kingdom, it said.

“Addressing this demand necessitates nearly doubling the current real estate capacity to adequately meet the expanding healthcare requirements of the population,” said Shishir Baijal, chairman and managing director at Knight Frank India.

“Post the pandemic, healthcare ranks amongst the mainstream avenues for investors looking for investments into long income generating assets.”

According to the report, the sector also expects to see high demand because of changing global demographics.

“The global healthcare sector remains buoyant and is expected to grow despite a challenging economic outlook. This comes as the global population shifts rapidly towards an ageing demographic, which is anticipated to drive demand for elderly care beds, particularly for full-time nursing care delivered in specialised facilities,” it said.

India’s healthcare market is growing rapidly. In 2022, the size of the Indian healthcare market was estimated to be $372 billion, significantly higher than $73 billion in 2012.

There are two factors contributing to the rapid expansion of the industry’s size. First is the rise in India’s population and the second is that India is among the top destinations for healthcare tourism, further necessitating more investment in the sector.

As per the Medical Tourism Index (2020-21), India ranked 10th out of 46 destinations worldwide. Government has also launched the Heal in India initiative in 2022 to promote medical tourism.