India’s hospital bed shortage could require nearly 2.9 million additional beds by 2035, alongside 2.6 billion sq. ft. of additional healthcare real estate, according to a report by CBRE South Asia.
The report, released on Friday, said India currently has around 1.6 hospital beds per 1,000 people, significantly below the global average of 3.3 beds per 1,000 people.
India’s healthcare real estate footprint stood at an estimated 2.1 billion sq. ft. in 2025. The country will need substantial infrastructure expansion to narrow the gap with global healthcare benchmarks.
The report said this requirement presents opportunities for developers, investors and healthcare operators to build purpose-designed healthcare facilities across different markets.
India hospital bed shortage creates demand for healthcare infrastructure
Healthcare investment in India is increasingly moving towards specialised facilities, day-care formats and expansion through acquisitions, the report said.
Beyond conventional hospitals, demand is growing for diagnostic centres, day-care surgery facilities and preventive healthcare services. These include health screening centres, rehabilitation clinics, eye-care centres, in-vitro fertilisation (IVF) centres and vaccination facilities, particularly in urban markets.
CBRE said operators in competitive cities are increasingly considering acquisitions of existing hospitals. This approach can help them enter established markets faster by leveraging existing infrastructure, licences and patient networks.
Anshuman Magazine, chairman and chief executive for India, South-East Asia, the Middle East and Africa at CBRE, said healthcare was emerging as a significant real estate opportunity.
He attributed the opportunity not only to rising demand for care but also to the need for a more extensive and geographically distributed healthcare network.
Healthcare infrastructure gaps vary across states
The report highlighted differences in healthcare infrastructure across Indian states, based on existing capacity and non-communicable disease (NCD) burdens.
Andhra Pradesh, Telangana, Tamil Nadu, Kerala and Karnataka have relatively higher existing healthcare infrastructure compared with their NCD burdens, according to CBRE.
In contrast, Chhattisgarh, Odisha, Madhya Pradesh and Jharkhand have lower hospital bed density relative to their NCD burdens.
Karnataka, Kerala, Tamil Nadu and Telangana also have stronger healthcare infrastructure and household incomes. These factors support further expansion of specialised healthcare facilities and medical ecosystems, the report said.
Built-to-suit facilities could support hospital expansion
CBRE highlighted built-to-suit (BTS) developments as one way to address India’s healthcare infrastructure requirements.
Under this model, developers create purpose-built clinical facilities tailored to healthcare operators’ operational and regulatory needs.
Magazine said such arrangements could allow healthcare providers to direct more capital towards clinical services, medical equipment and technology. Property owners could also benefit from greater income visibility through long-term leases.
The report pointed to opportunities across hospitals, specialised treatment centres and preventive healthcare facilities as India works to expand its healthcare infrastructure by 2035.
