The market size of India’s senior living market is expected to grow five times more from the current levels and touch $12 billion by 2030. Market size, which indicates inventory availability, is presently at 2 to 3 billion and is forecasted to reach around 10 to 12 billion, according to a survey by Colliers India.
With the rise in the ageing population, demand for senior living services like medical, insurance, housing, etc. has seen a steady rise. Factors like rising life expectancy, nuclearisation of families, and higher income levels have driven the need for senior living, especially in urban areas.
Demand for housing for senior citizens is presently at 18–20 lakh units and is estimated to rise significantly in the next five–six years, the survey stated. This growing demand will help create more opportunities for real estate developers and institutional investors.
In 2024, the availability of senior housing in India translates into a 1% penetration rate, which indicates a huge demand and supply gap. This is expected to grow by 3% by 2030. In countries like the US, UK and Australia, senior living markets account for a 6-7% penetration rate.
Future For Senior Living Segment
According to the survey, senior living has gained traction in tier-2 cities due to the slower pace of life, ease of living and smaller population. This includes cities like Ahmedabad, Surat, Coimbatore, Kochi and Panaji. Further, the segment is also witnessing a boom in places of pilgrimage such as Vrindavan, Ayodhya, Dwarka and Rameswaram.
Due to higher price points, potential end users are facing financial problems when investing in housing purposefully built for seniors. Banks and financial institutions will play a major role in improving senior living products in the country, particularly for the mid- and affordable segments.
Improved policy support for the development of senior living facilities from the government will help developers and institutional investors increasingly enter the segment. Schemes like the Atal Vayo Abhyuday Yojana provide financial assistance to organisations for maintaining senior citizen homes and improving the quality of life of senior citizens.
Many leading developers are dedicating a portion of apartment towers within townships to senior living housing. This will help make senior living more vibrant.
Since global players are coming into the Indian market, the segment will observe new offerings, which include business models and pricing strategies as well.
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