Healthcare real estate is a sub market of the real estate industry. Also known as “medical real estate” the sector helps in designing, constructing, and facility planning of buildings and offices for the healthcare industry. Indian healthcare sector is experiencing so much rapid change, thereby is poised for significant growth. Right now, the sector has developed into one of the largest sectors both in terms of revenue and employment. Thanks to its extensive coverage, investors are pumping money on this sector, which is expected to drive Indian real estate market over the coming years. Healthcare real estate trust is the latest addition in this block.
The total size of the healthcare industry is expected to touch USD 160 billion by end of 2017. Both the domestic and global companies are entering the market and driving the growth to the next level. Not only the hospitals and offices healthcare industry comprises of medical services, medical equipments, outsourcing, student accommodation, health insurance etc.
The demand for patient accommodation in government hospitals has become the crying need of the moment, as most of the salaried people in our country can’t bear expenses of treatment of the private hospitals. For the reason that government hospitals are cheaper, government hospitals overflow with patients on a daily basis. India is currently facing a persistent shortage of healthcare infrastructure in tier I and tier II cities, rural areas in particular. Only a construction boom can be an effective solution to calm this stress down. Government‘s several significant initiatives for this sector gets us a glimpse of the growth prospective of this sector in future. The demand of healthcare sector will advance real estate production in the next decade.
Followed by demonetization hit, India is on the verge of its economic expansion. Real estate sales market is undergoing several constitutional changes in order to gain investment credibility. The confluent factors such as rising middle-class income and change in lifestyle pattern are pushing the sector towards significant sales achievement. The growth will be additionally driven by the healthcare sector by both the governmental and private-partnership enterprises. Since, the healthcare industry is largely dominated by the private players; it is getting backed by large-scale investments from Private Equity (PE) sector as well. There is an existing opportunity for the global players to set up hospital chain in tier I and tier II cities across India.
The increasing demand of prime and alternative healthcare is constant. The future of healthcare industry is somewhat collateral to the real estate industry. A collaborative association of healthcare, real estate and private players can set forth overall good health of the population as well as the economy of the country.
“The key objective of advanced reality is to provide end-to-end solution to the other industries through project planning, budgeting, and proper constructional support. In alliance with healthcare, real estate market will be resulting in significant infrastructural development in the hospital industry,”-said Mr. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR).
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