Senior Living Segment Yet To Mature In India
The senior living market in India is grabbing all the attention as it is believed to have a potential to grow 5X times by 2030, says Colliers report. But the real estate sector has a lot of catching up to do in terms of providing requisite number of projects catering to senior citizens of the country. Overall population growth rate indicates that the senior population will grow at a much faster rate at 3.8 per cent versus 2 per cent of overall population. Whereas, the demand for senior living facilities is hugely untapped in India; a growing formal demand of over 3,20,000 units against planned supply of only 20,000 units, as per Association of Senior Living. Numbers Speak For Themselves The population itself is one major reason for the potential growth of the sector. JLL report says 17 percent of the world’s elderly people aged 60 or above will be from India by 2050. The expected increase in the senior population share from 10% to 20% by 2050, will result in an age dependency ratio of 34%.This also indicates, ample oppor- tunities for the developers to invest in facilities catering to the needs of the country’s greying population. As per JLL report, the top 10 senior living operators, including Columbia Pacific Communities, Vedaanta Group, Ashiana Group, Paranjape (Athashri), Primus, Antara, Advaitt, Covai Care, Prarambh Buildcon, and Saket Group, hold a combined market share of over 50%. The southern part of the country comprises majority of senior care facilities across Chennai, Coimbatore and Bengaluru. The other prominent regions offering senior living communities include Haryana, Rajasthan, Uttarakhand, Uttar Pradesh, and Himachal Pradesh, which hold 25% of the market share of senior living and care units followed by Maharashtra, Gujarat, West Bengal, and Madhya Pradesh which accounts for 13% of the senior living units. While there has been a notable increase in senior living projects in major cities, suburbs and tier-II cities such as Bhiwadi, Coimbatore, Puducherry, Vadodara, Bhopal, Jaipur, Mysuru, Dehradun, and Kasauli are also in the row. What Is Senior Living A lot of new expectations are shaping the senior living operations, compared to earlier, when it was just about food, shelter, & other basic facilities. With changing times, the requirements of the senior groups have also shifted to health and wellness and many more demands. They are now looking for senior living options that offer amenities such as fitness centres, recreational activities, and cultural events to support a vibrant and fulfilling lifestyle. Today, the senior living homes or retirement homes are plush, modern and well-planned gated communities with 24/7 security, CCTV cameras, doctor-on-call, ambulance services, in-house medical personnel, house-keeping, laundry, dining services, and group events for social lifestyle. The senior living providers offer the option to rent or own the dwelling. The senior citizens can also live in the facility for a few days to see if they would like to live there. The dwelling option range from 1-2 and 3 BHK flats to independent villas. The Untapped Opportunity Although there is a lot of demand for senior living facility in India now, the availability of it is a major concern. Also, the availability for all categories of senior citizens is the matter of discussion among industry leaders. As per industry data, there are less than 15,000 homes in mid-income price segment, against a demand for over 250,000 homes. Experts say developers can expect around 8-10% rental income with yearly escalations, depending on the various factors. The new entrants such as The Wadhwa Group project in Mumbai and Prescon Group project in Goa , are providing mid-segment and high-end senior living projects, to tap on the new revenue opportunities of this segment. Likewise, we may see many more developers entering this segment to tap the burgeoning opportunities. In India, when it comes to housing,the one section of people which are always affected is the mid-income groups. Similarly in terms of senior living also the mid-income groups have least options as most of the projects which are coming up are not falling into the affordable category and are meant for those who are financially strong. The need for affordable senior living homes still exists in India in large numbers. Affordability is a key concern, with existing options often catering to the higher-income segment. There’s a need for more budget-friendly solutions and government subsidies to make senior living accessible to a wider population. The senior living sector in India is poised for growth and innovation. Developers and investors can create a diverse senior living portfolio in the coming times. However, for the sector to grow and expand it will require a lot of support in terms of incentive schemes, relaxations on taxes, health care insurance and Mediclaim, a flexible rental policy and subsidized home loans. If all these are incorporated the future of senior living sector in India looks brighter, given the pent-up demand in the market. As indicated by various surveys, the demand for senior living spaces is driven by the aging population's desire for customized care and enriched living experiences. The sector is set to expand its footprint not only in major cities but also in tier-II cities, tapping into the needs of affluent households seeking comprehensive and holistic senior care solutions. As developers continue to innovate and expand, the future of India's senior living sector looks promising. With a keen focus on quality of life, community and care the industry is set to provide elderly residents with not just homes, but places where they can thrive and enjoy a vibrant later life. The ongoing developments in this sector are a testament to its potential and the evolving needs of India's aging population. Policy Initiatives Atal Vayo Abhyuday Yojana (AVYAY) scheme aim to create a supportive ecosystem for senior living facilities. MahaRERA (Maharashtra Real Estate Regulatory Authority) model guidelines to ensure developers meet necessary standards that include building design, accessibility features, and safety measures. Lucknow Development Authority’s “Second Innings” apartment project provides independent living with a safe and secure environment for senior citizens.
Tags : Atal Vayo Abhyuday Yojana (AVYAY) Maharashtra Real Estate Regulatory Authority senior living facilities mid-income price segment house-keeping laundry dining services fitness centres recreational activities cultural events