In a remarkable shift, India’s real estate landscape is gearing up for a significant surge in demand, with a particular focus on senior housing. Currently, the delivery space is abuzz with 50 projects in progress from the top 12 players, and an astonishing 60% of these ventures are strategically positioned in tier 2 cities, disclosed by ASLI -The association of Senior Living in India which has presented a white paper in association with PWC.
This surge in demand is not merely a trend; it’s a forecasted boom driven by the country’s rapidly expanding elderly population. Projections indicate a staggering demand for approximately 2 lakh units of senior living accommodations in the coming years, promising a housing revolution for seniors nationwide, the report says.
Ankur Gupta, joint MD, Ashiana Housing, and co-founder of the Association of Senior Living, said, “We’re diving into the senior care industry – a booming sector as India’s population grows. Our goal is to empower entrepreneurs to understand the world of seniors and uncover the vast potential for startups in this field. The Association of Senior Living, with its amazing members, currently takes care of over 2 lakh seniors, approximately, turning senior care into an inspiring, innovative journey.”
Interestingly, the spotlight of this surge is shining brightly on tier 2 and 3 cities, where the demand for specialized housing for seniors is expected to outpace the available supply. This presents both challenges and opportunities for real estate developers eager to tap into this burgeoning market.
“The senior care industry in India holds immense potential, but we acknowledge the challenges it faces, be it regulatory frameworks or infra development. We are dedicated to advocating transformative approaches that prioritize the well-being and dignity of seniors,” said Adarsh Narahari, chairman, Association of Senior Living India (ASLI) at the 4th ASLI Ageing Fest in the national capital.
The factors fuelling this increased demand are multifaceted. It stems from the growing healthcare needs of the elderly, their willingness to invest in personalized services, and a noteworthy shift towards geriatric-focused healthcare facilities. This transformative shift is anticipated to elevate the current niche geriatric services market, currently valued at 12-15 billion USD, to an impressive 40-50 billion USD market by the end of this decade.
The financial sector is not immune to this wave of change, with senior citizens contributing a significant one-fifth of total deposits in Scheduled Commercial Banks as of March 2023. Recognizing the financial capacity within this demographic, there is a rising call for personalized financial products tailored specifically to the unique needs of the elderly.
“India’s senior living industry holds immense potential, but it’s not without its challenges. Regulatory frameworks, societal perceptions, and infrastructure development are hurdles we must address to ensure a brighter future for our elders. As we navigate these challenges, ASLI is committed to advocating for a transformative approach that prioritizes the well-being and dignity of our seniors, making their golden years truly golden” said Rajit Mehta, chairman-elect of ASLI and MD & CEO, Antara Senior Care.
Government initiatives are aligning with this trend, such as the increased deposit limits for the Senior Citizens Savings Scheme (SCSS) and the introduction of ‘Elder Line,’ India’s first pan-India helpline for senior citizens. These efforts aim to enhance financial affordability and support for the aging population.
In response to this surging demand, both established and emerging players in the real estate, financial, and technological sectors are strategically positioning themselves. Senior care services providers are securing substantial funding for numerous projects, and technology-driven companies are harnessing the power of artificial intelligence to enhance senior care living and homecare.
CMD Bajaj Capital Rajiv Bajaj averred that elderly people should independent on three aspects — mentally, physically and financially.
As India envisions one in every five individuals being elderly by 2050, the senior care market is emerging as a critical sector. Despite recent advancements, there is a growing consensus that more comprehensive measures are needed, including increased corporate social responsibility (CSR) spending on Senior Citizen Welfare, to address the evolving and unmet needs of this rapidly growing demographic. The potential infusion of over $175 million by 2030 through increased CSR spending is expected to play a pivotal role in bridging existing gaps in both clinical and non-clinical senior care services.
