Authored by – Angad Bedi, CMD, BCD Group
India is on the verge of a significant transformation in its approach to real estate development, driven not by young urban professionals or tech-savvy millennials, but by the country’s rapidly growing elderly population. The 60+ age group, expected to nearly double to over 347 million by 2050, represents one of the most overlooked yet economically viable segments in the property sector. Developers and investors, long focused on luxury housing, co-living, and affordable urban sprawl, are now waking up to what industry experts call a multi-billion-dollar opportunity.
According to a recent study by JLL and the Association of Senior Living India, the senior living housing market in the country is on track to grow by over 300%. The growth is motivated not just by sentiment or social obligation; it is the consequence of a significant demographic shift, alongside increased income security, longer life expectancy, and evolving family structures.
A Billion-Dollar Opportunity
Historically, the Indian real estate market has paid little attention to the needs of the elderly. While the demand for family-centric apartments and working-professional housing flourished, dedicated senior housing lagged far behind. This created a significant void, what some industry observers have aptly called a “billion-dollar blind spot.” However, things are beginning to change.
Colliers valued the Indian senior living market at roughly USD 2-3 billion in 2024. By 2030, the market will likely touch USD 12 billion. That’s a fourfold jump in less than a decade. The factors driving these statistics are not only compelling but crucial to understand. India is ageing fast; and the number of senior citizens in India is rising steadily, and along with it, the demand for independent yet supportive living arrangements is growing.
From Isolation to Independence
The current generation of senior citizens is markedly different from the past generation. Today’s healthy and financially independent individuals reject the notion of old age as a symbol of dependence or isolation.They seek purpose, an active lifestyle, and a social environment that respects their freedom while catering to their evolving health and lifestyle needs. This demographic is no longer content with just growing old; they want to grow well. This transformation in expectations has influenced the structure of senior living communities. The new model is not merely about providing shelter but about offering a curated lifestyle comprising healthcare access, wellness programs, nutritious dining, on-site leisure facilities, and a sense of community.
South India Leads the Way
South India is one of the regions gaining momentum in this space. Karnataka, Tamil Nadu, and Kerala have experienced increased demand for senior living options. Cities like Bengaluru, Coimbatore, and Kochi have already emerged as popular hubs. Factors such as a favourable climate, strong healthcare infrastructure, and cultural openness to community living contribute to this wave. These regions are also witnessing growing interest from both domestic developers and international players. Projects here range from budget-friendly apartments with essential care facilities to high-end resorts styled as retirement villages.
Breaking the Stereotypes
There is a long-standing misconception that housing for the elderly is more of a welfare concern than a business opportunity. But the numbers suggest otherwise. Several real estate stalwarts and new-age prop-tech companies are entering the segment with financial prudence. Investment flows into this category are equally rising, especially through Alternate Investment Funds (AIFs) and private equity. Moreover, as this space continues to grow, we expect a growing potential for ancillary services such as home healthcare, physiotherapy, mental health support, nutrition consulting, and even tech-enabled solutions like emergency response systems and wearable health monitors.
Policy Support and Financial Instruments
While the sector offers a significant opportunity, it still needs some regulatory assistance to scale. It would greatly benefit from zoning policies that reserve a special category for senior housing, expedited processes for approvals and financial incentives to help facilitate investment in such projects. In addition, home financing products established specifically for seniors, reverse mortgages or long lease options could help bridge a wider affordability gap for retirees. Financial innovation will also be crucial. If the right instruments are implemented, millions of retirees could access secure, dignified living environments tailored to their needs
The Road Ahead
India is at a decisive stage in building inclusive policies for its ageing population. Unlike Western countries, where senior housing has long been a developed asset class, India is just beginning to scratch the surface. The next five to seven years will be crucial in shaping how the nation meets the needs of its elderly citizens.
The market indicates an enormous demand and presents a unique opportunity to the realty sector to build for a demographic that will soon make up a significant portion of India’s population. The housing sector’s response to this growing demand could open up a new chapter by turning a long-overlooked segment into a booming market. With the right vision, investment, and policy support, Indian developers can build a strong senior housing industry that meets the needs of its ageing population while contributing to the economy. It is also a golden opportunity to rethink how we support our ageing population.