The healthcare sector is likely to beat organised retail and business process outsourcing industries in its demand for commercial real estate in the next five years, says a study by architect's firm Edifice.
The findings are interesting as organised retail is expected to see huge growth in the next five years. The study indicates that healthcare will chart a faster growth.
Edifice is probably the largest firm of architects in India now with 320 professionals on the company's rolls. The study collated data through its nine offices on real estate projects and plans announced in different parts of the country.
The study says that fresh developments in healthcare will be around 250 million square feet, 25 per cent more than the 200 million square feet of fresh development expected in organised retail.
By 2012, the study says the healthcare sector is expected to grow by 170 per cent. It will have revenues of Rs 75,000 crore and 50 per cent of this will be from hospitals. Another 1200 new hospitals will be built by the private sector with the demand for new in-patient beds at seven lakh.
The revenues of the private hospital players will also double in the next five years.
The report says India is in a unique market where multiple industries are contributing to real estate growth. The retail sector is likely to follow with a demand of 200 million square feet in the next five years with hospitality following at 150 million square feet.
Angshuman Magazine, the India head for realty firm CB Richard Ellis said, "In the medium term more money will still continue to flow in organised retail. But in the long term surely healthcare will become the biggest realty demand creator. As income grows there will be demand for better healthcare and tier-II cities will see a lot of growth."
Vice-president for research at Angel Broking Sarabjeet K. Nangra said, "Healthcare spend in India is on a rise. It would drive a major part of the overall demand for real estate in India."
The Edifice report says hospitals will also adopt evidence-based design in hospitals. "Evidence Based Design can improve patient safety, enhance staff productivity and get better financial outcomes. Use of sound absorbing material, adequate ventilation, easy navigation, natural light and design of operating rooms and ICU's are the critical aspects to be kept in mind by the design and architect firms while designing of a hospital now."
Graphic element by 2012
Health care will need another 250 million sq ft of built up space
Health care will grow to Rs 75,000 crore industry
7,00,000 beds will be needed for in-patients
Pvt sector is expected to set up 1200 new hospitals
Private hospitals will have revenues of Rs 1,47,000 crore