Southern India Dominates Senior Living Housing Segment with 62% Share

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    According to a recent report by CBRE titled ‘Golden opportunities from the silver economy – analyzing the future of senior care in India,’ South Indian states, including Bengaluru, lead the organized senior living and care segment with a commanding 62% share. The north zone follows with 25%, while the central states hold 13%.

    The senior care landscape in India is evolving rapidly, with approximately 18,000 units spread across the country. The southern region stands out, contributing about 62% to the overall supply in organized senior living and care segments.

    Key players in the senior care segment are concentrated in southern tier-I and II cities such as Chennai, Coimbatore, and Bengaluru. Future expansion plans by major players are focused on cities like Chennai, Bengaluru, Hyderabad, Coimbatore, Pune, and NCR.

    Outside of South India, the north zone, comprising states like Haryana, Rajasthan, Uttarakhand, Uttar Pradesh, and Himachal Pradesh, holds a significant market share of 25% of senior living and care units. The central zone, including Maharashtra, Gujarat, West Bengal, and Madhya Pradesh, accounts for 13% of senior living units.

    However, distribution remains sparse in northern and western regions, including cities like Delhi-NCR, Pune, and Jaipur, with limited presence of senior care players.

    The target population for senior living comprises individuals aged 60 and above. India’s current penetration rate for senior living is less than 1%, contrasting sharply with more mature markets like the UK (11%), the US (over 6%), and Australia (approximately 6.7%).

    This underscores India’s nascent stage in the senior living market, indicating significant growth potential compared to established markets.

    Several factors are driving the rise in the senior living segment, including the increase in nuclear families, where 20% of the elderly population live alone or only with one spouse. The old-age dependency ratio is also expected to rise from 16% in 2020 to 34% by 2050.

    Higher affordability levels and growing acceptance of nuclear family structures contribute to this trend. Southern states benefit from prominent healthcare facilities, facilitating access to tertiary healthcare and raising awareness of geriatric care services.

    Trained staff availability, driven by the region’s focus on the healthcare sector, further enhances the quality of senior care in Southern India.

    The total estimated target for senior living facilities in 2024 is around 1 million, projected to increase to 2.5 million in the next decade. With approximately 150 million elderly individuals in India, this segment is poised for significant expansion over the coming years.

    Also read: Pune Real Estate Sees Surge in Property Registrations: Insights and Trends

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