Research

India | 2023

The rise of senior

living market in India
A comprehensive analysis of opportunities and challenges
The rise of senior living market in India
Introduction to senior living
With current population of over ~0.1 billion
Seniors in India, there is a significant untapped
opportunity for investment and development in
the Senior Living sector. In contrast to some of the
developed economies, India is still in the early stages
and therein lies the opportunity.
The need for senior living is primarily being driven
by increase in nuclear families, greater mobility due
to career/employment opportunities, increased
requirement of senior care services and a changing
perception of “social stigma” associated with the
asset class. Whilst homecare services for seniors has
picked up in recent years, it is challenging to offer an
ecosystem of medical care, wellness and create social
bonding amongst a similar cohort all at the same
time. Hence the concept of bespoke senior living
communities is on the rise and gaining acceptance as
well as popularity.
In this white paper, we showcase seniors in India as a
demographic segment and bring out overview of the
overall market potential, key trends in India, focus on
prominent operating models/ formats and outlook.
Source: Census of India, United Nations World Population Prospect-2022; UNFPA
Note: Senior Citizen age in India is 60+ years.
2
Elderly / Senior population share in overall India
population is expected to reach 20% by 2050 from
current 10% in 2023; this significant increase in share
will result in increased “age dependency ratio”
which is likely to reach ~34% by 2050. Also, by 2050,
number of dependent adults will be equivalent to
the number dependent children. This increase in the
elderly population will have a marked sociological
impact and an increased elder care requirement.
In addition to the numerical growth, today’s seniors
in India represent a distinct customer segment;
characterized by evolving needs and desires that
differentiate them from the previous generation.
They are financially stable, well-traveled, socially
connected, and possesses distinct preferences
regarding how they wish to spend their post
retirement years. This presents an opportunity for
developers, operators, service providers
and entrepreneurs to not only address the
infrastructure / housing requirement of seniors
but also cater to their changing requirements
and offer a lifestyle product including personalized
service through innovative solutions.
The rise of senior living market in India

Senior living: Key statistics

2023 Global Population 2023 Indian Population 2050 Indian Seniors With increase in life
expectancy, Elderly / Senior
population would emerge

8 Bn 1.4 Bn 1.7 Bn
as the fastest growing
demographic segment
Total Population Total Population Total Population in India.

10% 10% 20%

Percentage of seniors Percentage of seniors Percentage of seniors

0.8 Bn+ 0.1 Bn+ 0.3 Bn+

No. of Seniors No. of Seniors No. of Seniors

73.6 years 66.8 years 74.2 years

Life Expectancy Life Expectancy Life Expectancy

Note: Life Expectancy: Average age that members of a particular population group will live.
Source: JLL Research and Analysis, UNFPA’s State of World Population 2023

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The rise of senior living market in India

Market demands & trends

The COVID-19 pandemic raised awareness among A. Current Supply of Senior Living Projects B. Supply Distribution (Basis Unit Type)
the Indian population regarding the necessity of (Basis no. of projects)
Senior Living, consequently driving an upsurge in
68% 84%
demand for the senior living market. Moreover,
an increasing number of elderly individuals
previously residing in regular housing are opting
to transition to senior living facilities in need of
better care and social needs.

Senior population is emerging as the fastest growing

demographic segment in India (as per the estimates
of UNFPA report, by year 2050, one in every 5th
Indian would be Elderly / Senior); and with increasing
13% 16%
medical needs over time, providing an active lifestyle 12%
with curated engagement activities, nutritionally 5%
assisted meals and curtailing loneliness would be 2%
critical factors to consider. As a result of these factors,
there has been a notable increase in the demand South West North East Central Independent Living Assisted Living
for senior living. Source: JLL Research 2023

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The rise of senior living market in India

Senior living properties in India command an C. Pricing of Projects (Basis Outright Sale Model) D. Supply Distribution (Basis Operating Models)
average premium of 10-15% over regular
residential pricing as a result of the amenities
and services offered in senior living projects by
the developers to meet the specific needs of
18% 18%
Up to INR 4,000
10%
Lease
senior citizens.
INR 6,000 - 8,000 85% deposit
model
18% INR 4,000 - 6,000
Currently, almost half of the senior living projects Outright
46% INR 8,000 & above sale model
in India are in the range of INR 4,000 to INR
6,000 per sq. ft. 5%
Pure
rent model
However, the premium projects are priced above
INR 8,000 per sq. ft. having a share of 18%
in the market. E. Supply Distribution (Basis Product Typology)

Furthermore, high-end projects have also 26% 1 BHK

played a significant role in driving sales within
the senior housing market. These projects cater
to affluent individuals looking for opulent living 10% Independent villas
arrangements and offer a range of premium
amenities and services.
21% 3 BHK

Note:
Key takeaways from prominent senior living projects in India 43% 2 BHK
Source: JLL Research 2023

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The rise of senior living market in India

Following are the locations of projects of prominent players in Senior living sector

Delhi NCR/Noida/Gurugram Kasauli • Delhi-NCR, Chandigarh and

Dehradun have emerged
as top destinations to
Dehradun settle / retire by Seniors
in North India.
Jaipur
• Southern cities account
Ahmedabad for a major share of the
senior living market in
Kolkata the country. Bengaluru,
Vadodara Chennai, Puducherry, and
Hyderabad are the most
Bhopal preferred southern cities
Mumbai Oasis Senior living
for Senior Living.
Hyderabad
Pune • Developers are also
launching integrated
townships with a proportion
Banglore
of units/towers dedicated to
Mysore
senior living.

Chennai
• Pune has emerged as a
Coimbatore
the top destination for
senior living projects in
West India. There is also an
Kodaikanal increased interest observed
Pondicherry
from operators to enter
the MMR with the objective
of servicing demand
in Mumbai region.
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The rise of senior living market in India

• In India, a limited number of operators are

present in this segment.

• Overall, the top 10 operators have a combined

market share of more than 50%.

• Columbia Pacific Communities, Vedaanta,

Ashiana, Paranjape (Athashri), Primus &
Antara, are the prominent operators with
multiple projects spread across geographies.

Source: JLL Research 2023

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The rise of senior living market in India

Market share of prominent Senior Living Operators (basis no. of project units)

20%
18%
18%

16%

14%
13%
13%
12%

10%
8%
8% 7%

6%
5%

4% 4%
3% 3%
2%
2%

0%
Columbia Vedaanta Ashiana Paranjape Primus Antara Advaitt Covai Prarambh Saket
Pacific (Athashri) Care Buildcon
Communities

Source: JLL Research 2023

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The rise of senior living market in India

Factors considered by Consumers for Senior Living Projects

Connected Destination Society Ecosystem Likeminded People Type of Development Crime-Rate

Connectivity to major
city nodes, healthcare &
entertainment activity hubs
and workplaces.
A well aerated community
development within premise
with quality healthcare
assistance, curated
engagement activities,
nutritionally assisted
meals to ensure that the
seniors are physically and
cognitively stimulated.
It’s a conscious decision to
remain healthy and pursue
hobbies and interests
with likeminded people
in the vicinity.
The project should be Incidences of crime or the
part of a larger setup perceived sense of security
to maintain interaction or lack thereof in different
with the community pockets of the city.
(e.g., being part of a
township project or a
larger development).

Note: Key Takeaways from prominent senior living projects in India

Land Areas for Senior Living Projects

31%
0-2 acres of land
37%
2-5 acres of land
13%
5-10 acres of land
10%
10-20 acres of land
9%
>20 acres of land

Note: The average land area of senior living projects is 2-5 acres
Source: JLL Research 2023

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The rise of senior living market in India

The illustration showcases the four distinct categories of end users for senior living projects in India, effectively indicating the sources from where the demand originates.

Well-healed empty nester couple

Willingness to invest more money in projects
01 NRIs coming back to India
A sizable market in the Middle East, North
02
that prioritize quality design and have a America, Europe and Australia.
strong brand presence. Seniors who are now living overseas and
Importance of long term Healthcare is desire to return, as well as children who
prevalent amongst seniors in this context. remain overseas and have parents who
live here will increase demand for senior
living projects.

Seniors with constant medical assistance

As per National Institute of Health
03 Elderly who want to occupy the
apartments for a short duration
04
India , ~7.4% of elderly population is Larger Indian population in addition to NRIs
affected by dementia. who often visit India for short durations for
Senior living communities offer a solution various reasons such as favorable weather
such that caregiving is taken care of while still conditions, family visits, special events, or
ensuring round the clock connectivity. religious requirements can be a potential
market for these projects

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The rise of senior living market in India

Key drivers in the Indian market

UNFPA highlighted that nuclear families accounted Population Growth Rate of the Elderly (2022 – 2032)
for 52% of households in India. Metro regions
are witnessing a greater prevalence of nuclear 5%
families, with 54% in comparison to 51% in rural Above 75
areas, indicating a shift towards this family structure Years
4%
in senior care dynamics. In contemporary India,
seniors exhibit an increasing trend of economic
70-74
3% Years
independence. In addition, the COVID-19
pandemic has further emphasized the significance 65-69
of comfortable living arrangements, particularly for 2% Years
the elderly, reinforcing the need for a robust and
55-59 60-64
healthy ecosystem that prioritizes their
1% Years Years
well-being. In such cases, senior living communities
provide the necessary care and assistance for a
fulfilling and comfortable life. 0%

Source: JLL Research 2023 & UNFPA

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The rise of senior living market in India

Increasing elderly Population Rise in Nuclear Families

Financially Independent Seniors

Steady rise in the medical needs Relocation of NRIs after retirement

Source: JLL Research 2023

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The rise of senior living market in India
Senior living market for NRIs
India is top ranked country in terms of inbound remittances , in 2022 the remittances stood at ~USD 111 Billion with ~19.6%
increase from 2021.
NRI Real Estate Preferences
Segment Preference –
Overall Residential
Holding period (the average
ownership tenure of NRIs
in the Indian Residential
Market) – 5 Years +
Source: JLL Research 2023 & World Bank 2022
13
Tier 1 cities such as Chennai,
Bangalore, Mumbai, Pune,
Delhi and Tier 2 cities such
as Kochi, Mysore
Origin – Gulf Cooperation
Council, Singapore, Hong
Kong, USA and Canada
Ticket Size – Average
INR 10 - 15 Million and as
high as INR 30 – 35 Million
(Senior living projects)
Tier 1 branded
developers preferred
NRI’s do invest in high – end
senior living projects. They or
their parents may not be the end
users, but they do buy properties
like these as an investments
and may rent them out to end
users in India. Share of NRI
investors in Senior Living is
between ~5 to 10%.
Most of the investments in Senior
Living were in Maharashtra
followed by Kerala, Tamil Nadu,
Delhi and, Karnataka with a ticket
size of INR 10-15 Million.
The rise of senior living market in India

Delhi NCR

Mumbai
Pune

Bangalore Chennai

Kochi

NRI Preferred Location for Senior Living Investments

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The rise of senior living market in India

Global senior living market

Increasing life expectancy, lower mortality rates and an overall enhancement of the
standard of living across the world has contributed to people living longer than ever
before. In 2023 as per the UNFPA, it was estimated that the senior population in the
world is ~0.8 billion.

The 80+ age segment is the fastest growing segment amongst population cohorts in
several nations. UNFPA states that China and India are projected to have almost 50%
of the 1.3 billion worldwide seniors by 2040.

Senior housing is a USD 60 billion industry worldwide. In USA alone there are over
520,000 senior housing units with additional 16,000 units under construction.

USA, Canada and most European countries have the highest percentage of seniors
within their population (> 14.3%)

Mature markets such as USA and Australia, have more than 6% penetration rate
for senior population residing in formal senior living, assisted living , nursing care
communities and CCRCs.

Source: JLL Research 2023, Oxford Economics

15
The rise of senior living market in India

Markets

India United Kingdom USA Australia Thailand

• 89,000 retirement community units

Size of Market (units) 10,000+ 520,000 305,000 NA
• 665,000 retirement housing unit

Senior Population in 2023 10% ~14% ~17.2% ~17.3% 15.34%

Maturity Nascent Growing Mature Mature Nascent

• <1% in Retirement
Communities (IRC)
Penetration Rate <1% • 3% in a Care Home >6% 6.7% NA
• 7% all other purpose-built
retirement housing

U.S Market has higher percentage of aging baby boomer population and >6% of penetration rate in the senior living market because of government supportive schemes
that provide assistance for lower-income older individuals such as section 8 supportive housing, The U.S dept Veterans Affair, USDA, and policies by National Resource
Center on Native American’s aging that provide rental assistance and housing facilities offering a nationwide resource for older adults around the country, thus a mature
and successful market for Senior Living compared to Nascent market in India.

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The rise of senior living market in India
Formats of senior living
Senior housing formats vary from small scale Urban Formats to large scale Suburban Formats. Due to pressure on land within the city, the urban formats are typically
planned vertically, while peri-urban formats are typically low-rise developments spread over a larger expanse.
Urban Formats
Small scale CCRCs, spread over 1 - 5 acres,
are urban formats. Typically, these are located
within city limits and are vertical in design /
high-rise apartments.
Amenities are stacked on ground and first
floor followed by residences on all above
floors. There is a heightened sense of social-
connect, interaction and security, since all
the residents stay close to each other.
Source: JLL Research 2023
17
Peri urban Format
Large scale CCRCs, above 10 acres to
25 acres. It is a predominantly low-rise
community, which offers self - sufficient spaces
in all aspects – amenities and healthcare within
the campus; and do not require the residents
to travel out of the campus often. It is generally
Suburban Formats
targeted towards residents focusing on lifestyle
change / taking early retirement and aiming at a
Mid-scale CCRCs, spread over 5 - 10 acres, balanced lifestyle.
are suburban formats. These can be
located outside city limits or in the peripheral
locations of the city.
They are a combination of low-rise
apartments, independent houses or villas
replete with amenities which can be stacked
floor-wise or spread out or a mix of both.
The rise of senior living market in India
Development models of senior living
01
Outright sale model
• Title Security: Offers buyers the security
that their investment / asset will be
automatically transferred to their legal heirs
after their demise.
• Social Acceptance: Due to freehold
ownership of units by buyers.
• Returns: Payback period to the Developer
is shortest & project returns in a sale model
are the highest due to early cash flows.
Note: CCRCs: Continuity care retirement community
Source: JLL Research 2023
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02
Lease deposit model
• Lower Entry Cost: The availability
of a lower upfront cost for customers
will contribute to broadening the
demand and attracting more seniors to
the development.
• Flexibility in Payments: The consumers
can pay part of the market value of the
project and then pay the remaining over
the course of their stay.
03
Pure rental model
• Control on Project: The complete
ownership is retained by the developer
in the project.
• Occupancy Assurance: Model ensures that
those subscribing for the project are most
likely to occupy the units.
• Capital Appreciation Benefit: Developer
can enjoy complete benefits of capital
appreciation in the value of units and can
exit via a REIT/IPO.
The rise of senior living market in India
Opportunities
Need for
Specialized Care
As of 2023, India has over
0.1 Bn+ seniors which is
projected to reach over
0.3 Bn+ by 2050 (one
of the fastest-growing
demographic segments).
It is estimated that today
~ 27 million Indian seniors
need specialized medical
care, and this number will
continue to grow overtime.
Source: JLL Research 2023
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Changing
Mindset
Covid 19 pandemic has
resulted in a changed
mindset of seniors; who
were previously hesitant
to move into retirement
communities are now
considering them as
permanent residences.
Families living abroad /
outside home cities are
actively searching for senior
living communities for their
parents who live alone.
Increase in
Early Retirement
There has been an increase
in individuals opting for
early retirement. These
early retirees are physically
healthy and seek living an
active lifestyle. They are
interested in joining senior
living communities early
on to be surrounded by
like-minded individuals,
pursuing their hobbies and
continue in the community
during their golden years.
Rise in Healthcare
Nuclear Families Group Tie-ups
Rise in nuclear families Healthcare groups are also
and working population venturing into partnership
and growing preference with developers and are
of Seniors to stay playing an active role in the
independently while being senior living industry
socially connected along
with active lifestyle.
The rise of senior living market in India

Challenges faced by senior living

1 2
Support of Govt. Policies & Paucity of
Supporting Incentives Skilled Manpower
Government support in the form of incentives,
As the demand for increased healthcare / wellness
schemes, and policies is crucial for the
services increases for senior living, there will be a
development of senior living projects. This support,
strong demand for qualified and competent
similar to that provided for affordable housing, will
personnel and support staff. Operators will need to
foster increased supply and market penetration.
invest more in building this strong employee base
Relaxations on development charges, stamp
to ensure they are able to provide such services
duty, GST, property tax, and other measures are
in a seamless manner.
necessary to encourage developers and operators
to invest in this sector.

3 Creation of Insurance
Framework for Elderly
Provision of healthcare insurances and Mediclaim
4 Reducing the Cost for
Senior Living
Flexibility in rental policy for seniors and exploring
offers for seniors entering into senior living projects scope for subsidized home loans will help to
will attract more buyers in the market, improving reduce the entry cost for senior living projects.
the cost-effectiveness of healthcare services. Also creating a framework for transfer of asset
schemes will help bringing in more demand for
the asset class.
Source: JLL Research 2023

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The rise of senior living market in India

Market outlook
• The rapidly growing senior population in India, consisting of over ~ 0.1 billion individuals aged 60 years
and above, presents a compelling opportunity for service providers, developers, and operators to fulfill the
housing needs and diverse lifestyle preferences of seniors.

• Growing demand for senior housing in India can be attributed to various factors including increasing life
expectancy, lower mortality rates, rising nuclear families, changing social stigma associated with senior
living, and overall improvement in the global standard of living.

• The demand for housing specifically designed for senior citizens has experienced positive growth during the
COVID-19 pandemic and is projected to continue increasing in the future. This demand is primarily driven by
a increasing emphasis on health and well-being, combined with an aging population.

• Southern cities in India hold a significant share, ~68%, of the senior living projects in the country. This is
attributed to the presence of superior healthcare infrastructure, strong connectivity, and favorable climatic
conditions in those regions.

• The involvement of healthcare groups partnering with developers in senior living projects will act as a
catalyst in attracting more buyers to these ventures.

• In order to facilitate market expansion, the buyers of senior living projects require Government support in the
form of insurance and subsidized loans. Additionally, developers would require support from Government
through incentives and policies. This assistance will enable both buyers and developers to tap into the
growing early retirement trend in India, similar to the mature senior living markets.

21
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