Indian Senior Living Market Has Potential To Touch $12 Bn By 2030: Colliers

 The country's median age is likely to gradually increase from about 29 to 38 by 2050. Similarly, the proportion of aged people (above 60 years) is likely to increase from about 11 per cent in 2024 to 21 per cent in 2050. At the global level, over the next three decades (by 2050), of the 2.1 billion people above 60 years, India would account for a 17 per cent share indicating a significant demand growth for senior care including housing in the country.

"Like most emerging market economies, the demographic pattern of India is undergoing a steady yet definite shift. The population pyramid of the country will slowly but surely transform from the current expansionary stage to a more stable state in the next few decades. The current nascent senior living market presents a lucrative opportunity for private organised developers to capitalise on the untapped market. With rising interest from institutional players and leading real estate developers, senior housing in the country is set to be almost five times by 2030, compared to current levels," said Badal Yagnik, Chief Executive Officer, Colliers India.

With the rise in the ageing population, the demand for senior living services including medical, insurance, housing etc. has been steadily increasing. Factors like rising life expectancy, the nuclearisation of families, higher income levels, increasing importance of a stable post-retirement life and changing lifestyle are driving the demand for senior living, especially in urban areas. 

With an increased focus on health and wellness, seniors today are more active and engaged than previous generations - looking for senior living options that offer amenities such as fitness centres, recreational activities, and cultural events to support a vibrant and fulfilling lifestyle. Colliers estimates the current demand for senior housing at 18-20 lakh units, which is likely to increase significantly in the next five to six years. This growing demand creates lucrative opportunities for real estate developers and institutional investors.

With close to 20,000 units in the organised sector, the current availability of senior housing in India translates into a 1 per cent penetration rate, indicating a huge demand-supply gap. In contrast, countries like the US, UK and Australia have established senior living markets with a 6 to 7 per cent penetration rate. Moreover, a lower population base also means significantly less demand-supply gap in these matured markets.

"While currently the senior living market size in India is estimated to be about USD 2-3 billion, it is expected to witness a CAGR of more than 30 per cent and reach USD 12 billion by 2030. Although the demand-supply gap will remain high even in 2030, the penetration in the senior living market has the potential to improve significantly in the long term. All in all, the senior living market in India is likely to witness accelerated growth in the next few years and embark upon an eventual transition into maturity with changing demographics," said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Senior living in India currently is being offered by private developers through apartments ranging from 1 to 3 BHK or villas, in two formats - independent living and assisted living. Independent living facilities are typically preferred by seniors who can manage their daily activities independently but seek the convenience of community living. The average ticket size of independent senior living in India is about INR 1 to 2 crore, largely depending on the city and location. Currently, there are very few developers that focus on the senior living segment in India. Some of the major organised developers include Ashiana, Columbia Pacific, Paranjape, Anatara and Primus Senior Living. A significant portion of the supply side is concentrated in southern cities, leaving substantial room for growth and development in other parts of the country.

Senior living has been gaining traction in tier 2 cities led by a preference for a slower pace of life, ease of living and lesser population-related infrastructure stress. Cities like Ahmedabad, Surat, Coimbatore, Kochi and Panaji are preferred cities for senior living accommodation. The segment is also witnessing a boom in places of pilgrimage such as Vrindavan, Ayodhya, Dwarka and Rameswaram. According to the Association of Senior Living India (ASLI), currently, about 60 per cent of the senior living demand is emancipated from tier 2 cities. Limited senior housing inventory in these cities presents immense potential for private developers looking to diversify their portfolio across the country. (ANI)