Here’s why South Indian cities such as Chennai, Coimbatore and Bengaluru command 60% share of the senior living market

The report points out that India’s demographic landscape is undergoing a transformation, with projections indicating a more than two-fold increase in the senior population to 346 million by 2050, representing almost 21% of the nation’s total populace. As India’s senior population, defined as individuals aged 60 and above, is poised to more than double, from 156.7 million in 2024 to 346 million by 2050, the senior living housing sector is expected to touch ₹64,500-crore mark by 2030, the report said.

As awareness and acceptance of senior living solutions rises, this sector which is currently at just 1.3% market penetration presents an unprecedented opportunity for developers and investors alike to build quality-driven solutions, the JLL-ASLI report said, adding that a compound annual growth rate of approximately 27% is projected for the segment.

“This presents an opportunity for India to develop a robust, compassionate senior care ecosystem that not only meets the evolving needs of its elderly population but also fosters sustainable, long-term industry growth,” said Ankur Gupta, co-founder, ASLI and Joint Managing Director, Ashiana Housing.

South Indian cities occupy almost half of the senior living real estate share in the country

India’s senior living industry currently has more than 20,000 residential units spread across the country with the southern part of the country accounting for 60% of the market share.

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This 60% share is taken by Chennai, Coimbatore and Bengaluru that account for almost 45% of the senior living stock in India. Delhi-NCR in the North accounts for almost 14% stock across the country, Pune and Ahmedabad comprise about 16% senior living stock in the western region and account for almost 13% of the total stock in the country. Kolkata accounts for around 4% stock in the east and the same percentage of senior housing stock in the eastern region, the report showed.

Why do South Indian cities take the lead in the number of senior living projects?

The southern states are experiencing accelerated population aging due to sustained lower fertility and mortality rates. Secondly, these regions are home to a larger proportion of parents whose children are Non-Resident Indians (NRIs).

Early adoption: South Indian cities like Coimbatore and Bengaluru were early adopters of the senior living concept, creating a more mature market.

Cultural factors: South Indian families are often more accepting of the concept of senior living communities, viewing them as a viable option for elderly care.

NRI population: Many Non-Resident Indians (NRIs) from South India invest in senior living projects for their parents or their own retirement.

Climate: The relatively milder climate in many South Indian cities is considered more suitable for retirees.

Healthcare infrastructure: Many South Indian cities have well-developed healthcare facilities, which is crucial for senior living projects.

“However, these trends are gradually changing, and senior living projects are increasingly being developed across India. Developers in the North are working to overcome these challenges and the market is expected to grow as awareness increases and cultural attitudes,” said Samantak Das, Chief Economist and Head – Research and REIS, India, JLL.

Heavily skewed towards the sale model

Given the dominance of independent living facilities, the market structure is heavily skewed towards the sale model, with over 80% of units sold outright, followed by lease/rental and hybrid models.

In terms of sizes, units between 500- 1,000 sq. ft. are most prevalent, with the 1,000-1,500 sq. ft. segment following closely.

Are all senior living housing projects luxury units?

Senior living projects command a premium over standard housing in the same area due to specialized amenities, enhanced security, and medical facilities. This premium extends to maintenance charges, covering medical services, meals, and additional staff.

Pricing typically ranges from ₹50-70 lakh for a 1 BHK to ₹70 lakh– 1 crore for a 2 BHK, with luxury projects reaching ₹1-2 crore and beyond for larger units. Currently, 81% of launched units are priced between ₹50 lakh to 1 crore.

Senior living units command premium prices due to several factors

Senior living facilities typically offer a range of specialized services tailored to older adults, such as healthcare support, meals, housekeeping, and activities, which are included in the price.

The pricing often includes not just housing, but a comprehensive package of care and lifestyle services.

Specialized staff and higher staff-to-resident ratios contribute to increased operational costs.

These units are designed with accessibility and safety features specific to older adults’ needs, increasing construction and maintenance costs

Many senior living communities are situated in areas with access to amenities and healthcare facilities, driving up real estate costs. The primary market for these units often includes seniors with significant retirement savings or assets, who can afford higher prices, said Das.

Reduce GST burden on seniors to make senior living more affordable

Government subsidies and incentives for developers and operators are required to create more affordable senior living options.

The government should consider expanding tax incentives for both developers and seniors to make building and residing in these facilities more economical, said Das.

Reduction of GST burden for seniors through relaxation or reduction of GST on services and products offered within senior living communities will also help, he said.

There should be senior healthcare insurance schemes tailored for residents of senior living communities, ensuring coverage of long-term care and home care services. Besides, stamp duty should be reduced for purchase of such units, he added.

Why are senior living projects now part of integrated townships?

Senior living projects are now part of integrated townships rather than being dedicated senior homes. The shift is largely because integrated townships allow seniors to live near their families while maintaining independence. This set-up promotes intergenerational interaction, reducing isolation for seniors.

Shared infrastructure and amenities in townships reduce overall development and operational costs. Economies of scale make it more financially viable for developers.

It also allows for easier transitions as residents age, potentially moving from regular housing to senior-specific units within the same community.

Integrated approaches create more balanced, sustainable communities with diverse demographics. Besides, mixed-use developments appeal to a broader range of buyers, potentially increasing overall sales, explained Das.

“This shift reflects a more holistic approach to urban planning and senior care, addressing both the practical needs of seniors and the evolving social attitudes towards aging and community living,” he adds.