The Indian senior housing market will experience accelerated growth in the coming years

Like most emerging market economies, India’s demographic pattern is undergoing a steady but marked shift. The country’s population pyramid will slowly but surely transform from its current expansion phase to a more stable state in the coming decades. Significantly, the country’s average age is likely to gradually increase from about 29 to 38 years by 2050. The proportion of elderly people (above 60 years) is also likely to increase from about 11 percent in 2024 to 21 percent in 2050. 2050. At a global level, India will account for a 17 percent share of the 2.1 billion people over the age of 60 over the next thirty years, to be precise by 2050, indicating significant growth in demand for elderly care, including housing and health in the country. With the increasing aging of the population, the demand for senior living services, including healthcare, insurance and housing, has steadily increased.

Factors such as increasing life expectancy, nuclear families, higher income levels, the increasing importance of a stable life after retirement and changing lifestyles are driving the demand for senior housing, especially in urban areas. Experts believe that the Indian senior housing market is still at a nascent stage. And today’s emerging senior housing market presents a lucrative opportunity for private, organized developers to capitalize on the untapped market. With increasing interest from institutional players and leading real estate developers, the number of senior housing units will be almost five times the current level by 2030, according to a recent study by Colliers India. With the increased focus on health and wellness, seniors today are more active and engaged than previous generations. They are looking for senior living options that offer amenities such as fitness centers, recreational activities and cultural events to support a vibrant and fulfilling lifestyle. Going by Colliers India’s research, the current demand for senior housing at 18 to 20 lakh units is likely to increase significantly over the next five to six years. This growing demand creates lucrative opportunities for real estate developers and institutional investors.

While the size of the senior housing market in India is currently estimated at around $2-3 billion, it is expected to witness a CAGR of over 30 percent and reach nearly $12 billion by 2030. The question therefore is: does India have sufficient supply to accommodate the rising senior population in the country? With nearly 20,000 units in the organized sector, the current availability of senior housing translates into a penetration rate of one percent, indicating a huge demand-supply gap. In contrast, countries such as the US, Britain and Australia have created a senior housing market with a penetration rate of 6 to 7 percent. Furthermore, a lower population base also means less supply-demand gap in these mature markets. While the supply-demand gap will remain high even into 2030, penetration of the senior housing market has the potential to improve significantly in the long term. Overall, the senior housing market in India is likely to experience accelerated growth in the coming years and ultimately transition to maturity with changing demographics.