South Indian cities such as Chennai, Coimbatore, and Bengaluru have taken a commanding lead in India’s senior living market, accounting for nearly 60% of the country’s senior living housing units, according to a report by JLL and the Association of Senior Living India (ASLI).
As published by Hindustan Times, together, these cities represent 45% of the total senior living stock in India, while North Indian cities hold 20%, the West 16%, and the East just 4%.
The report reveals that India’s senior population, currently at 156.7 million, is expected to more than double to 346 million by 2050, comprising nearly 21% of the nation’s total population. As the senior population grows, the senior living housing sector is anticipated to reach a ₹64,500 crore market by 2030.
Despite currently holding only 1.3% market penetration, the sector is forecast to grow at a compound annual growth rate (CAGR) of 27%, presenting significant opportunities for developers and investors.
Demographic Shift and Market Growth
India’s demographic transformation presents a unique opportunity for developers to cater to an aging population. Ankur Gupta, co-founder of ASLI and Joint Managing Director of Ashiana Housing, emphasized the potential to develop a compassionate and sustainable senior care ecosystem that meets the evolving needs of seniors while promoting long-term growth for the industry.
Why South Indian Cities Are Leading the Senior Living Market
The dominance of South Indian cities in the senior living market can be attributed to several factors:
- Accelerated Population Aging: South India is experiencing rapid population aging due to lower fertility and mortality rates, leading to a larger proportion of elderly residents.
- NRIs Investment: Many Non-Resident Indians (NRIs) from South India invest in senior living projects, either for their parents or their own retirement, driving demand in cities like Coimbatore and Bengaluru.
- Early Adoption: These cities were early adopters of the senior living concept, establishing a more mature market and fostering greater acceptance.
- Cultural Factors: South Indian families tend to be more accepting of the senior living model, viewing it as a viable option for elderly care.
- Climate: The relatively milder climate in these cities is more conducive to retirees seeking comfortable living conditions.
- Healthcare Infrastructure: Many South Indian cities have well-developed healthcare facilities, which are crucial for senior living projects.
Despite South India’s dominance, the senior living market is gradually expanding to other parts of the country. In the North, developers are addressing challenges related to cultural attitudes and market awareness. Samantak Das, Chief Economist and Head of Research at JLL India, noted that as awareness grows, the senior living market in the North is expected to see increased development.
The senior living market is heavily skewed towards the sale model, with over 80% of units sold outright. Lease/rental and hybrid models make up the remaining portion. Units typically range from 500 to 1,000 sq. ft., although there is increasing demand for larger units, typically between 1,000 and 1,500 sq. ft.
Pricing and Premium for Senior Living Units
Senior living projects often command a premium over standard housing due to specialized amenities, enhanced security, and medical services. Prices for units typically range from ₹50 lakh for a 1 BHK to ₹1 crore for a 2 BHK. Luxury units in these projects can reach ₹1-2 crore or more for larger spaces.
The higher prices are attributed to the inclusion of specialized services such as healthcare, meals, housekeeping, and various lifestyle activities. Specialized staff and a higher staff-to-resident ratio also contribute to increased operational costs. Additionally, these projects are often located in areas with easy access to healthcare and other amenities, further driving up the cost.
Addressing Affordability: Need for Government Support
To make senior living more affordable, experts recommend government intervention through subsidies and incentives for both developers and seniors. Samantak Das proposed expanding tax incentives for developers and reducing the GST burden on senior living services to make housing in these communities more accessible.
Furthermore, the introduction of senior healthcare insurance schemes specifically designed for residents of senior living communities would help cover long-term care and home care services. Reducing stamp duty for purchasing senior living units could also alleviate financial barriers, making these projects more affordable for potential buyers.
Integration of Senior Living Projects in Townships
An emerging trend in senior living development is the integration of senior living projects into broader, mixed-use townships. This shift is driven by the following benefits:
- Proximity to Families: Integrated townships allow seniors to live close to their families while maintaining independence. This setup fosters intergenerational interaction and reduces the isolation often felt by elderly residents.
- Shared Infrastructure: Sharing infrastructure and amenities in townships helps reduce development and operational costs, making these projects more financially viable.
- Easier Transitions: Integrated communities allow seniors to move from standard housing to senior-specific units as they age, providing a seamless transition within the same community.
- Sustainability: Mixed-use townships promote more balanced, sustainable communities by attracting a broader range of residents, which can lead to increased overall sales.
The integration of senior living within these townships reflects a more holistic approach to urban planning, addressing the practical needs of seniors while accommodating the evolving social attitudes towards aging and community living.