India Needs 2 Billion Sq Ft of Healthcare Space, States Report
India requires a staggering 2 billion square feet of healthcare space to support its vast population of 1.42 billion people, according to a report that was published on Thursday. Alarmingly, there are less than two million beds available in the nation in contrast with World Health Organization (WHO) guidelines, showcasing a significant deficit.
Bed Capacity Significantly Lower Than WHO Standards
According to the Global Healthcare Report by real estate consultancies Knight Frank and Berkadia, India has 1.3 beds for every 1,000 people, encompassing both public and private facilities; the WHO mandates three beds per 1,000 people. This figure is substantially less than the rates observed in other nations, such as Japan (13), China (4.3), the United States (2.9), and the United Kingdom (2.5).
Market Growth Boosts Need for Expansion
This gap is especially crucial considering the Indian healthcare market's quick expansion. The Indian healthcare market is expected to reach $372 billion in 2022, a considerable increase from $73 billion in 2012, signifying the sector's robust development. The industry's size is expanding swiftly due to the World Bank reporting that India's population growth (1.42 billion) now exceeds that of China (1.41 billion).
India as a Medical Tourism Hub
India's attractiveness as a medical tourism destination is another factor driving the need for healthcare industry investment. During pre-pandemic years, the number of foreign visitors entering on medical visas increased by 30% annually between 2014 and 2019. India was placed tenth out of 46 international travel destinations in the Medical Tourism Index (2020–21); the Center also started the "Heal in India" campaign in 2022 to encourage medical travel.
Cost-Effective Medical Procedures
The data presented in the report emphasize that India provides medical procedures at prices that are much more competitive than those of its Asian rivals. For instance, a coronary artery bypass costs $7,900 in India as opposed to $17,200 in Singapore and $26,000 in South Korea. A heart valve replacement costs $9,500 in India, compared to $39,900 in South Korea, $17,200 in Thailand and Turkey, and $16,900 in Singapore. Knee and hip replacements cost $7,200 in India, but the same treatments cost $21,000 in South Korea and $17,000 in Thailand.
Real Estate Capacity Needs to Double
Shishir Baijal, chairman and managing director of Knight Frank India, emphasized the urgency of the situation by noting that "To adequately meet the expanding healthcare requirements of the population, addressing this demand necessitates nearly doubling the current real estate capacity."
Healthcare Investments Show Promise
Baijal added, "Healthcare is one of the main options for investors seeking long-term income-generating investments after the pandemic,". The industry anticipates strong demand because of changing global demographics, according to the report.
Global Healthcare Sector Shows Growth
"Despite a grim economic outlook, the global healthcare sector is still growing and is predicted to continue doing so. It coincides with the fast aging of the world’s population, which will continue to increase demand for elderly care beds, especially for full-time nursing care provided in specialized facilities,” the report concluded, highlighting the sector's resilience and potential.