SENIOR LIVING: THE ASSET CLASS NOBODY TALKS ABOUT

In a sector obsessed with luxury residences, data centres, warehousing and commercial real estate, one asset class continues to sit quietly in the shadows despite possessing some of the strongest growth fundamentals: ‘senior living’.
While developers race to build the next integrated township or branded residence, a demographic shift is unfolding almost unnoticed. Today’s retirees in India are healthier, wealthier and more independent than previous generations. This evolution mirrors what happened in countries such as the United States, Australia and Singapore, Japan, among others. Barry Ashcroft, Co-founder, Director & COO, Apollo Care Alliance, Australia, underlining how regulation and public funding shape the sector there, highlighted that the Australian government funds nearly 75% of senior care costs and does not allow profit-making from elderly care. “Our revenue comes from providing accommodation.” As per Mitsuru Sakoda, General Manager & Head of Global Business Division, Sompo Care Inc., with almost 30% of Japan’s citizens above 60, the country is now the most aged country in the world. “Hence, societal frameworks and senior care support are becoming increasingly critical to sustain such a large elderly population,” he said. While Indian players in the senior care business will draw largely from the global playbook, the price points at which they operate will be the defining factor in making services accessible and affordable for a wider population. Indian models will also need to be built around the country’s culture and societal needs.

India’s Massive Demand-Supply Gap

Despite the growing need, supply remains remarkably limited. At a recent industry forum, the CREDAI projected that the senior living market could reach USD 36 billion by 2050, underlining the scale of the long term opportunity. Latest industry assessments indicate that India will require nearly 2.3 million senior living units by 2030. Organised supply, stands at only 20,000–22,000 units nationwide, translating into a penetration level of about 1.3 percent.

In India, senior living still represents a niche segment, accounting for only a small fraction of the overall housing stock. Rajit Mehta, Former Chairman, Association of Senior Living India (ASLI) has underlined the magnitude of challenges— larger than any other country—with 19,500 people turning 60 every day. “We need to create relevant infrastructure, put in place holistic care solutions, redefine the contours of current financial products, and also reinvent our policies, frameworks, and tax incentives. Alongside, we must also build a larger pool of caregivers,” he said.

Market estimates suggest the senior living sector could achieve annual growth rates exceeding 30% by 2030.

The Investor’s Blind Spot

Why then does senior living continue to receive so little attention? Part of the reason lies in its hybrid nature. Senior living sits at the intersection of real estate, healthcare, hospitality and community management. Many developers are comfortable selling apartments. Far fewer are prepared to manage healthcare partnerships, wellness programmes, dining services and resident engagement initiatives. From an investment perspective, the institutional investors are beginning to examine senior housing as a stable, yield generating asset class with long-term demand visibility. Vikash Rathi – Principal, Healthcare Investments, Premji Invest, urged companies in the senior care sector to build business models that are relevant to a larger audience in India to make themselves investible. “Problems of this magnitude will require ‘Make in India’ solutions to ensure senior care services are scalable and suitable for our country.” Chintan Kothari – Partner, Eight Roads Ventures, listed a few key imperatives - “Insurance will be critical, and it will require regulatory intervention. Fiscal incentives in the form of land subsidies, tax reliefs on income, adaptive deductibles, etc., are other essential components that can move this sector forward.” Indeed, as the demographic curve steepens, the sector offers predictable absorption and recurring income models. For investors looking at defensive real estate strategies, senior living presents a compelling case.

Senior housing is emerging as a serious investment class, comparable to co-living and student housing a decade ago. Institutional capital is beginning to recognise the long term yield stability of senior living assets.

Policy Support Remains Essential

For senior living to achieve mainstream status, policy intervention will be critical. India currently lacks a comprehensive regulatory framework dedicated to senior housing. Clear guidelines regarding operations, healthcare integration, taxation and consumer protection would help build trust among both investors and residents. The UNFPA has also highlighted the need for stronger institutional support systems and enhanced regulatory oversight for elderly housing and care facilities. The sector’s future will depend on how effectively governments, developers and healthcare providers collaborate to create age-friendly ecosystems.

Industry stakeholders have called for clearer norms around assisted living, healthcare tie ups and operational standards.


Moving Beyond Being A Niche

India’s senior living sector is moving beyond its niche beginnings. As the silver economy expands, senior living is poised to become one of the defining growth segments of India’s urban future. Southern India dominates the senior living sector, accounting for about $5.1B of the $14B market. Coimbatore, Chennai, Bengaluru, and Pune host the most senior living projects, while cities like Gurugram, Dehradun, and Hyderabad are rapidly emerging as luxury and assisted-care hubs. The new set of cities emerging as attractive destinations for retirement communities and age-friendly housing include – Mysuru, Ahmedabad, Indore, Kochi, Goa, Jaipur, Vadodara, Visakhapatnam and Mangaluru. Industry experts are also closely watching Gandhinagar, Nashik, Chandigarh, Bhubaneswar and Nagpur as future growth centres for organised senior living due to improving healthcare ecosystems, infrastructure development and increasing retiree migration.

Senior living may well be India’s most overlooked real estate asset class— but, as India’s urbanisation story matures, senior living could become one of the defining residential formats.