Boost your real estate venture by starting a school

Vinod Kakumanu
Feb. 28, 2019, 3:37 p.m.

The real estate sector has a central role in planning and provisioning the necessary land, infrastructure for residential and commercial purposes. People face a host of challenges on their journey to start a school, the paucity of land being the biggest. Click here to read our guidance on selecting land for school purpose.

Recently we have witnessed a tribal community donating sizable land for the establishment of a school in one of the remotest areas in India. The populace conceived the idea of bringing a perfect main stream school to combat disadvantages of geographical marginalization, socio-cultural alienation and effects thereof in the region. Clearly, Education has a central role in social development and brings rich opportunities.

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We feel compelled to recount another case of a village in Cambodia where people have established a floating school in a pond using bamboo. This shows the expedient ways which indigenous people can come up with when faced with want of land.

The scenario prevalent in nations besides India will be helpful. A review of China’s case establishes that the Chinese philanthropists are showing their commitment to domestic schools so are the ones from South East Asia.

The real estate giants can greatly contribute to the education sector by proactively starting schools in their ventures, which in fact will be symbiotic and philanthropic at the same time.

Hence, I will take my chances to convince real estate entities.

We came across real estate entities who have shown an interest in starting schools, we have sensed the plausibility of the school projects by analyzing their thought process, and that became one of the sources of our idea to draw real estate entities into marking a difference by starting schools in India or at least weigh the options.

Our partners who happen to be the promoters of finest schools in India hold acreage that is sizable enough to accommodate any of the infrastructural projects including habitations. However, they chose to bring to life a school which is a source of pride for them now.

Real estate has contributed to the urban development, putting in place the infrastructure for the burgeoning urban middle class, the drivers of the economy and are continuing the work which is expanding by the day. However, we would not hesitate to propose the participation of real estate players in the field of school education also.

If we take an incisive view, we will find that the real estate players will also benefit if they choose to establish schools in their venture. The popularity of the premises that holds a school of repute is a given. Besides that, the value of the habitat which includes a school rises significantly. It would not be outlandish to say that the presence of a school would be a decisive factor for the buyers.

Proximity benefit for the children will be a statement of the obvious. It cannot be contested that the environment that a hub of learning would create would find few parallels. The modern housing societies which have every amenity one can think of, spare schools in the perimeters. We are confident about the interests that would be served if the state-of-art complexes house an educational enterprise.

We have written on corporate contribution to education and CSR initiatives undertaken in India. Our research reflects that the real estate entities, unlike the other enterprises to reckon with, do not have a considerable share in the educational philanthropy. I hope this article begins a campaign to change that. Real estate entities to take a page from the book of philanthropic corporates which are increasingly spending the CSR funds on schooling and improvement of education.

The real estate sector is the key to the dynamics of the cost of the land. And the land is the key to bringing forward the hesitating educationists to build exemplary schools.

Real estate coupled with infrastructure building is one of the biggest employers. And it is the biggest employer of the unskilled unorganized labor. The man years contributed by a semi-skilled employee will be significantly efficient and the only way to do that is education. The momentous shift that an initiative from real estate entrepreneurs would be comparable to the CSR expenditure that top companies in India support.

While we are not inclined to appeal to charitable sensitivities we do weigh our proactivity against what is at stake. And in the case of urban expansion, it is worthy to make a case for the initiation of a drive of starting new schools within the residential complexes.

Our experience as K-12 school consultants has familiarized us in the school real estate market and our understanding of the nuances of the real estate and education combine has convinced us that the inflow of the capital into schools from real estate sector is critical for social development.