 "Senior housing boom: South Indian cities drive 60% of market growth")
As India’s older population rises, South Indian cities like Chennai, Coimbatore, and Bengaluru have emerged as the epicentre of the country’s booming senior living housing sector, according to a recent report by JLL and the Association of Senior Living India (ASLI).
These cities account for nearly 60 per cent of the total market share of the 20,000 residential units currently available under this segment, while North Indian cities comprise just 20 per cent, the West holds 16 per cent, and the East accounts for only 4 per cent.
A demographic shift driving growth
India’s demographic landscape is undergoing a significant transformation, with the senior population expected to more than double by 2050, reaching 346 million and representing nearly 21 per cent of the nation’s total population. The senior living housing sector, which currently represents just 1.3 per cent of the housing market, is projected to see exponential growth, with an estimated market value of Rs 64,500 crore by 2030.
"With the senior population set to increase, the senior living housing sector presents an unprecedented opportunity for developers and investors to build high-quality, compassionate solutions that meet the needs of this growing demographic," Ankur Gupta, co-founder of ASLI and joint managing director of Ashiana Housing told The Hindustan Times.
Southern cities dominate senior housing market
The report reveals that the southern states of India are experiencing accelerated population aging, which is expected to drive the growth of senior living communities. Chennai, Coimbatore, and Bengaluru, collectively account for almost 45 per cent of the senior living stock in India, while the entire southern region commands a 60 per cent share of the market. This growth can be attributed to several factors, including early adoption of senior living concepts, cultural acceptance, and a significant Non-Resident Indian (NRI) population investing in these projects for their aging parents.
Why South Indian cities lead in senior housing sector
The dominance of South Indian cities in senior living projects can be attributed to several key factors:
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1. Demographic trends: South India is seeing an accelerated rate of population aging due to lower fertility and mortality rates.
2. NRI influence: Many South Indians living abroad invest in senior housing for their elderly parents, fuelling demand for these communities.
3. Cultural acceptance: South Indian families are more receptive to the concept of senior living communities, often viewing them as an ideal solution for elderly care.
4. Healthcare infrastructure: These cities boast robust healthcare facilities, a crucial factor for attracting seniors to specialised housing projects.
5. Climate: The milder climate in these regions is often more appealing to retirees.
Coimbatore and Bengaluru, in particular, were early adopters of the senior living concept, making them more mature markets for such developments.
The market structure: Skewed towards sale models
The senior living market is primarily driven by the sale model, with over 80 per cent of units sold outright. The most prevalent unit sizes are between 500 to 1,000 sq. ft., followed by the 1,000 to 1,500 sq. ft. range. This model is in stark contrast to the rental or lease models, which are less common.
Luxury senior living units: Pricing and premium features
While many senior living projects cater to premium customers, they command a significant price premium compared to regular housing. Specialised amenities, including healthcare support, meals, security, and housekeeping, drive up the cost of living in these communities.
Pricing for senior living units typically ranges from Rs 50-70 lakh for a 1BHK, Rs 70 lakh–Rs 1 crore for a 2BHK, and can exceed Rs 1 crore for larger, luxury units. As the demand for high-quality senior housing continues to rise, 81 per cent of launched units fall within the Rs 50 lakh to Rs 1 crore price bracket.
Need for affordable senior living solutions
Despite the market's growth, the high cost of senior living units presents challenges for many elderly individuals. JLL’s Samantak Das suggests that government intervention is necessary to make these units more affordable.
“Government subsidies and tax incentives for both developers and seniors could make senior living options more accessible. Additionally, reducing the GST burden for seniors and introducing senior healthcare insurance schemes will help address the financial challenges of senior living,” said Das.
Senior living projects in integrated townships
Another trend emerging in the senior living sector is the integration of these projects into larger mixed-use townships. Rather than being standalone senior housing, these developments are now part of integrated communities where seniors can live independently while being near to their families.
This shift not only reduces isolation, but also makes these communities more financially viable for developers, thanks to shared infrastructure and economies of scale. It also fosters intergenerational interaction, which can improve the quality of life for residents.
“This shift reflects a more holistic approach to urban planning and senior care, addressing both the practical needs of seniors and the evolving social attitudes towards aging and community living," Das added.