More than 200 private schools across Bengaluru are now being put up for sale in response to falling student enrolment due to the Covid-19 pandemic. School owners are being forced to compete with the more established corporate-run schools and the rising costs of running educational institutions.
According to KAMS (Karnataka Associated Managements of English Medium Schools), some private school owners are considering selling their school buildings due to lack of enrolment and revenue.
The decline of student numbers, increasing operational expenses, and the challenges of maintaining infrastructure and regulatory compliance have been cited.
Enrolment Decline After Covid
The drop in student enrolment after the Covid-19 pandemic is one of the major concerns for private school managers.
According to the KAMS secretary, D. Shashikumar, many private schools have seen their enrolment decline by around 100 to 200 students after the pandemic. In some schools, the total number of students is now said to be below 100.
With fewer students paying fees, school management is finding it increasingly difficult to meet recurring expenses such as staff salaries, electricity bills, water charges, and building maintenance.
Competition From Established Schools
Private school owners are also facing increased competition from well-established and corporate-backed schools.
Smaller schools are often unable to match the infrastructure, facilities, and resources provided by larger schools, school management representatives said.
The investment required for buildings, laboratories, classrooms, technology, and other facilities may also not be able to generate sufficient returns when student numbers are low.
So some school owners are reportedly looking at selling their properties rather than continuing to run institutions at a loss.
Under Pressure from Operating Costs
Maintaining a school requires significant recurring expenditure. School managers need to pay staff salaries and other operational costs while keeping fees affordable for parents.
Management representatives have said the fee revenue generated by schools in some places is not sufficient to cover these costs.
The situation is even more difficult for schools with low enrolment. In some institutions with fewer than 100 students, fee revenue might not be enough to cover infrastructure and administrative expenses.
Accreditation and Infrastructure Challenges
School management also has challenges in meeting the infrastructure and other requirements necessary for recognition and renewal.
Additional investment in maintaining the facilities and meeting prescribed standards can be required as well. In schools that are already under financial pressure because of low enrolment, this kind of investment may be challenging.
According to KAMS, lower enrolment, infrastructure costs, regulatory requirements, and rising operational costs have added to the financial pressure on private schools.
School buildings are being considered for sale
The financial difficulties persist, and some private school owners are selling their school buildings and properties.
The trend shows the difficulty for smaller private educational institutions in Bengaluru following the pandemic.
As a whole, the situation may differ from school to school based on location, enrolment, fee structure, infrastructure, and management costs. The figure of more than 200 schools is information that school management representatives shared with the government rather than having an independent government count of schools.
For many private schools, increasing enrolment while keeping operating costs under control remains a key challenge. The developments have also raised questions about the changing landscape of private school education in Bengaluru after the Covid-19 pandemic.
