India's growing senior population is creating a new wave of opportunity in the real estate sector-senior living. A recent report by Colliers predicts a fivefold growth in this market by 2030, fueled by a rise in demand for specialised housing for older adults. By 2050, India is expected to have the world's largest elderly population, with over 300 million senior citizens. Currently, there's a demand for over 320,000 senior living units, but only 20,000 units are available. This significant gap presents a lucrative opportunity for developers. Despite the growth, affordability remains a challenge, highlighting the need for budget-friendly solutions and government support.
India's growing senior population is creating a new wave of opportunity in the real estate sector - senior living. A recent report by Colliers predicts a fivefold growth in this market by 2030, indicating a surge in demand for specialised housing options for older adults.
The rapid growth of the senior population is a key driver. By 2050, India is expected to have the world's largest elderly population, with over 17% being 60 or above (JLL report). This translates to roughly 300 million senior citizens in India by 2050. The overall population growth rate is projected to be 2%, while the senior population will grow at a much faster rate of 3.8% (Association of Senior Living). This significant demographic shift creates a massive demand gap.
JLL estimates a current demand of over 320,000 senior living units in India. However, the planned supply stands at a mere 20,000 units, highlighting a significant gap. This presents a lucrative opportunity for developers, with experts suggesting potential rental income of around 8-10% with yearly escalations.
The top 10 senior living operators in India, including Columbia Pacific Communities, Vedaanta Group, Ashiana Group, Paranjape (Athashri), Primus, Antara, Advaitt, Covai Care, Prarambh Buildcon, and Saket Group, hold a combined market share of over 50%.
Currently, the southern part of the country leads the way, with senior care facilities concentrated in Chennai, Coimbatore, and Bengaluru. Other prominent regions include Haryana, Rajasthan, Uttarakhand, Uttar Pradesh, and Himachal Pradesh (25% market share), followed by Maharashtra, Gujarat, West Bengal, and Madhya Pradesh (13% market share). However, the trend is shifting, with suburbs and tier-II cities like Bhiwadi, Coimbatore, Puducherry, Vadodara, Bhopal, Jaipur, Mysuru, Dehradun, and Kasauli witnessing a rise in senior living projects.
Today's senior living facilities are far from the traditional idea of retirement homes. They offer a vibrant and fulfilling lifestyle with amenities like fitness centres, recreational activities, and cultural events. Modern senior communities are well-equipped with security features (24/7 security, CCTV cameras), medical support (doctor-on-call, ambulance services, in-house medical personnel), housekeeping, laundry services, dining services, and group events for social interaction. Residents can choose to rent or own their dwellings, with options ranging from 1-2-3 BHK flats to independent villas.
Despite the growing demand, affordability remains a major concern. The current options primarily cater to the higher-income segment, leaving a vast section of middle-income seniors with limited choices. Industry data suggests there are less than 15,000 homes in the mid-income price segment, against a demand for over 250,000 homes. There's a need for more budget-friendly solutions and government subsidies to make senior living accessible to a wider population.
The senior living sector holds immense potential for growth and innovation. To unlock this potential, the government and developers need to work together. Policy initiatives like Atal Vayo Abhyuday Yojana (AVYAY) scheme, which aims to create a supportive ecosystem for senior living facilities, and MahaRERA's (Maharashtra Real Estate Regulatory Authority) model guidelines to ensure developers meet necessary standards, are positive steps. Further measures like tax breaks, health insurance support (including Mediclaim), and relaxed rental policies could significantly boost the sector's growth.
As developers continue to innovate and expand their offerings, the future of India's senior living sector looks promising. With a focus on quality of life, community, and personalised care, these facilities aim to be more than just homes - they can be places for seniors to thrive and enjoy a fulfilling second chapter. The ongoing developments in this sector are a testament to its potential to address the evolving needs of India's ageing population.
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