India is experiencing a significant demographic shift, with its elderly population growing rapidly. According to the National Statistical Office’s (NSO) “Elderly in India 2021” report, the country’s senior citizen population (aged 60 and above) is projected to increase from 138 million in 2021 to 194 million by 2031, representing a 41% growth over a decade. This demographic change is driving the expansion of the senior living industry in India.
The senior living market in India is set to witness considerable growth. Colliers estimates that the market will reach approximately $12 billion by 2030, up from its current size of $2-3 billion. This growth is supported by various factors, including changing family structures, increasing life expectancy, and evolving lifestyle preferences among seniors.
Here are five key factors contributing to the rise of the senior living industry in India:
Growing Senior Citizen Population
The rapid increase in India’s elderly population is the primary driver of the senior living industry’s growth. As life expectancy improves and birth rates decline, the proportion of seniors in the total population is expected to rise from 10.1% in 2021 to 13.1% by 2031, as per the NSO report. This demographic shift is creating a significant demand for specialized housing and care facilities tailored to the needs of older adults.
Shift from Joint to Nuclear Families
The traditional joint family system in India is gradually giving way to nuclear families. This shift has led to a decrease in the number of available caregivers at home for elderly parents. As a result, many seniors and their families are seeking alternative living arrangements that provide both independence and support.
According to a report on senior care in India, called ‘Golden opportunities from the silver economy, the total estimated target for senior living facilities is projected to reach 2.5 million in the next ten years, up from around 1 million in 2024. Currently, India has approximately 18,000 senior living units, representing a penetration rate of just 1%, compared to 11% in the United Kingdom and 6% in the United States. This low penetration rate indicates significant room for growth in the Indian market.
Increased Mobility and Independence among seniors
Modern Indian seniors are becoming more mobile and independent, seeking lifestyle options that cater to their specific needs and interests. Senior living communities offer a range of housing options and services designed for individuals aged 60 and above, fostering independence, social engagement, and convenience.
These communities include independent living facilities, assisted living centres, memory care units, and continuing care retirement communities.
Focus on Security and Medical Care
Safety and access to medical care are crucial considerations for elderly individuals. Senior living communities provide a secure environment with easy access to healthcare services, addressing the concerns of both seniors and their families. These facilities often offer on-site medical support, emergency response systems, and wellness programs tailored to the needs of older adults.
Holistic Well-being and Mindfulness
Senior living communities are increasingly focusing on the holistic well-being of their residents, incorporating mindfulness practices and wellness programs into daily life. These initiatives aim to enhance emotional well-being, alleviate stress, and promote overall wellness for older adults.
Activities such as guided meditation sessions, yoga, Tai Chi, mindful eating practices, gardening, and art therapy are being integrated into senior living programs. These practices not only improve physical health but also foster mental clarity, emotional stability, and social connections among residents.
The growth of the senior living industry in India is not limited to major metropolitan areas. Tier II cities and spiritually focused locations are also seeing increased interest in senior living facilities. Cities like Ahmedabad, Surat, Coimbatore, Kochi, and Panaji, Mysore, Varanasi, Hubli as well as pilgrimage sites such as Vrindavan, Ayodhya, Dwarka, and Rameswaram, are becoming popular destinations for senior living projects. According to the Association of Senior Living India (ASLI), around 60% of the demand for senior living currently comes from tier II cities. The limited availability of senior housing in these areas offers significant opportunities for private developers to expand and diversify their portfolios nationwide.
Besides, enhanced policy support and investment from institutional investors are significantly boosting the senior living market. Government schemes like Atal Vayo Abhyuday Yojana (AVYAY) aim to provide financial assistance for the maintenance of Senior Citizen Homes, thereby improving the quality of life for seniors. Additionally, real estate developers are increasingly recognizing the potential of this market, leading to innovative housing projects that cater specifically to the elderly.
Several states, such as Maharashtra, have drafted guidelines for senior living projects to ensure they meet the needs of the elderly. These guidelines encourage developers to take up more such projects by offering tax-based incentives, relaxed development charges, and inclusive land use zonal permits.
As the industry evolves, there is potential for expansion into low- and mid-income segments, innovative financing schemes, and increased government support. The integration of senior living units within larger township projects is also emerging as a trend, creating more vibrant and diverse communities for older adults.
The senior living industry in India is set for major growth due to changes in demographics, family structures, and senior preferences. With developers, investors, and policymakers recognizing its potential, we can expect more innovative and expanded senior living options. This will provide India’s growing elderly population with comfortable, secure, and fulfilling living environments in their later years.
Shared By: Ms. Sumathy Varayur
Co-founder of Manasum Senior living homes
