As India’s elderly population is set to rise sharply by 2050, there is a need for reimagining senior living beyond real estate to leverage its full potential.

Vinod Behl 

Driven by shifting demographics, growing NRI involvement, and changing societal attitudes, the sector holds immense potential to improve senior citizens’ quality of life while boosting economic growth. It calls for smart living solutions- comfort-focused designs, long-term investor confidence and supportive policies   like reverse mortgages and public-private partnerships to make senior living more accessible and financially secure.

Potential & Challenges

According to a recent KPMG- CREDAI report, with urbanisation, rise of dual income households and increasingly dispersed families, the demand for senior living solutions is steadily growing.  As elder care gains acceptance post-pandemic and nuclear families increase demand for specialized care, India is at a turning point in shaping the industry’s future. With collaboration among developers, investors, healthcare providers and policy makers on sustainable senior communities and with government initiatives like Ayushman Bharat Scheme for seniors and healthcare investments, senior living sector is evolving rapidly to attain new heights.

As India’s senior population is set to reach 192 million by 2030 and 346 million by 2050, there’s an urgent need to strategise senior living, going beyond late-life care to continum that potentially begins at 50 plus age. Especially keeping in view a number of challenges faced by the sector including accessibility and affordability, awareness related constraints, lack of comprehensive healthcare systems and shortage of trained professionals. According to Boman Irani, President, CREDAI, the absence of comprehensive regulatory frameworks and quality standards result in inconsistent levels of care and services across the sector.” High costs and underdeveloped infrastructure limits access to quality senior living homes. Developers feel cautious due to expanded operational support requirements and investors face marginally larger payback periods compared to traditional residential projects”, says Irani.

Business Dynamics

Geographically, Southern India leads in senior living while Northern and Western regions are steadily progressing. The sector is shifting beyond traditional retirement homes to luxury senior housing, inter-generational communities and holistic wellness-focused spaces. From financial perspective, real estate developers with projects in the senior living sector, typically anticipate different returns depending on the project type. Assisted living projects due to their higher operational costs and stringent regulatory requirements, offer post-tax IRRS of 12-15%. In contrast, independent living projects tend to achieve higher returns, with post-tax IRRs ranging between 15-25% based on the project profile.

Vision & New Models

According to Boman Irani of CREDAI, our vision should be to create a dynamic and resilient senior living sector that meets current market demands and anticipates future needs. Collaboration between stakeholders – private developers, investors, healthcare providers and policy makers will be critical to building sustainable and forward-looking senior communities. Vishal Gupta, MD, Ashiana Housing says that for the sector to flourish, it must undergo transition from traditional real estate models to sustainable frameworks that seamlessly integrate real estate, healthcare and hospitality. “These frameworks should cater to diverse needs by offering a mix of independent living and assisted living formats, ensuring continuous care for different age groups. Further, properities must also evolve beyond luxury amenities to emphasise on the delivery of quality care”.

Looking Ahead

Moving ahead, unlocking the full potential of India’s senior living sector will require a collaborative effort between policy makers, developers and operators. ” Government support through tax incentives, subsidised land and favourable policies like rental schemes, property tax rebates and capital assistance fund, can play a critical role in attracting private investment and enhancing affordability for end-users. Ultimately, the success of the sector will depend on delivering long-term resident-centric solutions that address the evolving needs of senior citizens while ensuring both operational and financial sustainability” says Vishal Gupta of Asiana Housing.

India’s nascent senior living sector, according to John Nettleton, Group Property & Partnerships, Audley Group, could benefit significantly from adopting global best practices including integrated care models, structured DMFs (Deferred Management Fees) and innovative financing mechanisms, addressing the rising demand and leveraging the proven international frameworks. Indian developers could bridge the supply gap and unlock the long-term potential of this evolving sector.