As soon as restricted to the southern states, India’s senior dwelling market is quickly increasing nationwide, pushed by evolving societal norms and the rising nuclearisation of households. Seniors are not ready for medical wants to think about a transfer to specialised housing—many of their early 60s are choosing impartial items to reinforce their high quality of life. Mission builders, too, are concentrating on progress in temple cities like Varanasi, the place extra seniors are selecting to spend their later years in a culturally and spiritually wealthy setting.
Regardless of its projected fivefold progress over the following six years, the market will stay undersupplied, with penetration anticipated to achieve simply 3 per cent by 2030—nonetheless far behind the ten per cent in some developed nations. Not like markets just like the US, the place leasing dominates, Indian seniors overwhelmingly choose to buy their houses.
With India’s senior inhabitants—these aged 60 and above—set to greater than double within the subsequent 25 years, this demographic is attracting rising curiosity from policymakers, regulators, and companies. Consultants say actual property builders should rethink their fashions, prioritising long-term engagement and providers over short-term income, whereas stronger laws are important to guard senior patrons and help market progress.
Rising demand for senior dwelling
“Earlier, the typical age of individuals shifting into retirement communities was 70-plus. Now, there’s a very completely different development rising with many early retirees, notably from Bangalore, shifting in between their mid- to late-50s, treating these residential items as a second dwelling,” stated Shreya Anand, director of Coimbatore-based Vedaanta Senior Dwelling.
Assisted dwelling has lengthy dominated senior care, however impartial dwelling is quickly gaining floor, particularly amongst youthful seniors. “Folks used to maneuver in solely once they may not handle on their very own. Now, after retiring, they search a extra fulfilling life-style—whether or not alone, as a pair, or with mates—as many have youngsters settled overseas. They will spend just a few months visiting their children and return with out worrying about gasoline connections, newspapers, or milk—all the pieces is taken care of,” stated Anantharam Varayur, co-founder of Bangalore-based Manasum Senior Dwelling.
The demand for senior dwelling is estimated between 18-20 lakh items in 2024, whereas the provision is simply round 20,000 items, based on knowledge from Colliers. By 2030, provide is predicted to develop virtually fivefold to 90,000 items whereas the demand will surge to 30 lakh items, a progress of round 50 per cent.
Market penetration nonetheless low
Nonetheless, market penetration by 2030 will solely be 3 per cent in comparison with the present 1 per cent. “If we concentrate on the related inhabitants—these with the power to pay—this group accounts for about 10 per cent of the senior citizen inhabitants. That provides us a ratio of roughly 0.1 per 100. In distinction, the US market, on the different excessive, sees 10 to 12 per 100 of its related inhabitants looking for senior dwelling options. Different developed markets like Australia additionally vary between 4 and 10 per 100. There’s an enormous potential for this market to develop in India,” stated Saurabh Mehrotra, a senior govt at Knight Frank.
Not like within the US, the place the leasing mannequin is the dominant selection for purchasers trying to transfer into senior dwelling items, nearly all of demand in India comes from seniors keen to buy items. In line with Varayur, solely round 30 per cent of purchasers go for leasing items. Anand defined that seniors above 70 to 80 years choose to lease as their requirement is tilted in the direction of healthcare whereas these youthful gravitate in the direction of shopping for items to profit from worth appreciation.
“The priority normally is the Indian mentality of asset. They’d moderately purchase one thing than lease one thing. The problem comes as to how do you make sure that there’s a payback. Most of the builders that we work with have began taking a look at assured buyback choices beneath which a pre-decided buyback value is set to extend the consolation ranges for such investments,” Mehrotra stated.
The North/South divide
Whereas demand for senior dwelling is rising throughout the nation, roughly 60 per cent of the market continues to be concentrated in South India. “Within the South, there has historically been a better acceptance of impartial senior dwelling and senior care services as a consequence of evolving household constructions, larger ranges of urbanisation, and rising inhabitants of seniors. In distinction, north India nonetheless has conventional joint household constructions, with capabilities to supply family-based care to seniors. Therefore, the shift in the direction of impartial senior dwelling communities has been slower however is selecting up traction,” stated Rajit Mehta, MD and CEO of Antara Senior Dwelling, a Max Group firm.
Along with socio-economic causes, senior dwelling initiatives within the South additionally profit from higher weather conditions. “For seniors, after some level of time, it turns into very troublesome to tolerate winters within the North. We see an enormous variety of purchasers coming down from Delhi, Dehradun, and even Ahmedabad and eager to settle within the South,” Anand stated.
Nonetheless, the market in North India continues to be enticing to many builders. With altering demographics, additional nuclearisation of households, and the rising want for life-style independence coupled with enough healthcare entry for seniors following the Covid pandemic, the North is ready to garner a bigger market share.
Antara, for example, has senior dwelling initiatives in Noida, Gurugram, and Dehradun. Manasum can also be exploring to arrange greenfield initiatives in Varanasi and Lucknow. In line with Varayur, temple cities like Varanasi within the North, but additionally Tirupati, Madurai, and Rameshwaram within the South, have excessive enchantment for senior residents.
Policymakers take discover
Anticipating speedy enlargement within the senior dwelling section, policymakers and regulators are shifting rapidly. In February, the federal government’s apex suppose tank NITI Aayog launched a report recommending reforms, together with accreditation for senior care services and a single window approval to fast-track initiatives. The latter suggestion is very essential, given the time-sensitive wants of senior patrons and the actual property sector’s repute for lengthy delays in handing over possession.
Furthermore, in March, the Union Ministry of Social Justice and Empowerment set minimal requirements for senior citizen houses, adopted by Maharashtra’s Actual Property Regulatory Authority (RERA) drafting mannequin tips for senior dwelling initiatives in Might. The central authorities’s concentrate on senior care can also be set to accentuate, evident from its current resolution to increase the Ayushman Bharat PM-JAY insurance coverage programme to residents aged 70 and above.
For senior dwelling to develop sustainably in India, actual property builders must adapt to the service-oriented wants of the section. Furthermore, they might want to reimagine enterprise fashions that prioritise worth over income. “At any time when we take a look at builders driving this enterprise, their thought course of is all about construct extra, which is precisely the alternative of what’s required. What’s required is extra open areas, extra widespread areas, and that may solely are available when the mannequin is pushed by specialist gamers moderately than by builders,” Mehrotra stated.
In its report on elderly-friendly dwelling/housing sector reforms, NITI has really helpful the event of a regulatory framework “to help the event of the personal sector and supply essential market stewardship whereas making certain the best high quality of service supply”. It additionally advocated for a single window approval as a “4–5-year improvement cycle shouldn’t be a fascinating situation for seniors”.
