Senior Living Demand Surges Across India

    Date:

    Share post:

    India’s senior living market is rapidly expanding beyond its traditional stronghold in southern states, driven by changing societal norms and the increasing nuclearization of families.

    Seniors are no longer waiting for medical needs to consider specialized housing; many individuals in their early 60s are opting for independent units to enhance their quality of life.

    As reported by the The Indian Express, the profile of individuals moving into retirement communities has evolved significantly. Shreya Anand, director of Coimbatore-based Vedaanta Senior Living, observes that many early retirees, particularly from urban centers like Bangalore, are now moving into these communities between their mid- to late-50s. They are treating these residential units as second homes, showcasing a growing preference for independent living among younger seniors.

    Anantharam Varayur, co-founder of Manasum Senior Living, highlights the shift from traditional assisted living to independent living. Seniors used to relocate only when they could no longer manage on their own, but now they are seeking an enjoyable lifestyle post-retirement.

    Many have children settled abroad and prefer the convenience of not having to manage everyday responsibilities like gas connections and groceries, as these are taken care of in senior living facilities.

    According to data from Colliers, the demand for senior living units in India is projected to be between 1.8 million and 2 million by 2024, while the supply is currently around 20,000 units. By 2030, the supply is expected to grow nearly fivefold to 90,000 units, but the demand could surge to 3 million units—a growth of around 50%. Despite this growth, market penetration is projected to remain low, reaching just 3% by 2030, up from 1% currently.

    Unlike markets in the United States, where leasing is the dominant choice, most Indian seniors prefer to purchase their homes. Varayur notes that only about 30% of clients opt for leasing, with those aged 70 and above typically leaning toward leasing due to healthcare needs. Younger seniors are more inclined to buy, viewing their homes as assets that will appreciate in value.

    The cultural preference for ownership presents a challenge for developers, who must ensure that there is a financial return on these investments. Many developers have begun to offer guaranteed buyback options, providing a pre-decided buyback price to instill confidence in potential buyers.

    While demand for senior living is rising across India, approximately 60% of the market remains concentrated in southern states. This trend can be attributed to a higher acceptance of independent living in the South, where urbanization and changing family structures have created a conducive environment for such developments. Furthermore, the milder climate in southern India is more appealing to seniors who may struggle with harsh winters in the North.

    Rajit Mehta, MD and CEO of Antara Senior Living, explains that traditional joint family structures in northern India have historically provided adequate care for seniors. However, the landscape is changing, especially in the aftermath of the COVID-19 pandemic, as the need for lifestyle independence and healthcare access becomes more pressing.

    Developers are increasingly exploring opportunities in northern cities. Antara has established senior living projects in Noida and Gurugram, while Manasum is considering greenfield projects in Varanasi and Lucknow. The appeal of temple towns like Varanasi, along with the growing interest in lifestyle independence, positions the North as an emerging market for senior living.

    In anticipation of rapid growth in the senior living sector, policymakers and regulators are taking action to create a supportive environment. In February, the NITI Aayog, India’s apex think tank, released a report recommending reforms such as accreditation for senior care facilities and streamlined approval processes to expedite project launches.

    Additionally, the Union Ministry of Social Justice and Empowerment has established minimum standards for senior citizen homes. In March, Maharashtra’s Real Estate Regulatory Authority (RERA) drafted model guidelines for senior living projects. The central government’s focus on senior care is set to intensify, evidenced by the extension of the Ayushman Bharat PM-JAY insurance program to citizens aged 70 and above.

    For the senior living market in India to grow sustainably, real estate developers must adapt to the service-oriented needs of seniors. Mehrotra emphasizes that developers should prioritize value over short-term profits, focusing on creating open and communal spaces that foster a sense of community.

    NITI Aayog’s report advocates for the development of a regulatory framework to support the private sector and ensure high-quality service delivery in the senior living space. A streamlined approval process is essential, as long development cycles are unsuitable for seniors.

    India’s senior living market is on the cusp of significant transformation, with increasing demand and evolving expectations from seniors. As the demographic landscape shifts, there is immense potential for growth across the country. Developers and policymakers must collaborate to create an environment that prioritizes the needs of seniors, ensuring that this vital segment of the population can thrive in their later years. With the right strategies and frameworks in place, the future of senior living in India appears promising, offering opportunities for both residents and investors.

    Related Posts

    Latest posts

    Brookfield India REIT Launches QIP

    Brookfield India Real Estate Trust (BIRET) has announced the launch of its Qualified Institutional Placement (QIP) to raise...

    Top Real Estate Firms Announce Joint Investment in Luxury Housing Project

    ASK Property Fund, KREEVA, the real estate arm of the Kanodia Group and Shapoorji Pallonji Real Estate have...

    The Future of Indian Real Estate: Key Real Estate Market Trends Shaping 2025

    Authored by - Mr. Avneesh Sood, Director Eros Group The Indian real estate sector stands on the brink of a...

    From Affordable to Premium: The Shift in India’s Residential Real Estate Market

    Authored by: Mr. Ravindra Gandhi, Managing Director of Tirasya Estates The Indian real estate market has witnessed significant transformations in...