India requires 2.4 mln more hospital beds to meet standards: Knight Frank report

India is in need of an additional 2.4 million (24 lakh) hospital beds to achieve the recommended ratio of 3 beds per 1,000 people, leading to increased demand for healthcare-related real estate space, according to a report by Knight Frank.  

Currently, the country boasts around 70,000 hospitals, with 63 per cent of them falling under the private sector, as revealed by global real estate consultant Knight Frank and US-based Berkadia in their joint report released on Thursday.

Knight Frank India stated, "India is facing a deficit of 2 billion sq ft of healthcare space to cater to its current population base of 1.42 billion people."

India presently experiences a substantial gap between the available hospital beds and the required number.

"The existing bed-to-population ratio in India is 1.3/1000 population (including both private and public hospitals), with a deficit of 1.7/1000 population. To meet the needs of the current population, an additional 2.4 million beds are required," noted the consultant.

This disparity presents an opportunity for both public and private entities to expand their presence in the Indian healthcare industry.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, underlied, "The challenge of India's population-to-bed ratio, coupled with increasing population, underscores the pressing need for significant enhancement in the country's healthcare infrastructure."

Post-pandemic, the report identified healthcare as a key area for investors seeking long-term income-generating assets.

The report also highlighted the substantial growth of India's healthcare market, estimated at $372 billion in 2022, a notable increase from $73 billion a decade ago (in 2012), with an annual average growth rate of 18 per cent.

India's healthcare market predominantly comprises hospitals, pharmaceuticals, health insurance, and medical technologies, with the hospital industry constituting 80 per cent of the healthcare market.

Factors such as a gradually ageing population, rising per capita incomes, increased health awareness, and the penetration of health insurance contribute to the growing demand for the healthcare industry in India.

Furthermore, the prevalence of lifestyle diseases, especially cardiovascular diseases, is expected to boost the demand for specialised healthcare.

The report also noted India's emergence as one of the most affordable healthcare destinations globally, offering quality medical procedures at relatively lower costs. Between 2014 and 2019, the influx of foreign tourist arrivals on medical visas experienced a Compound Annual Growth Rate (CAGR) of 30 per cent, according to the report. 

(With PTI inputs)