India’s demographic profile is undergoing a significant transformation, marked by a predominantly youthful population—only 11% are aged over 60, a percentage far below that of many other nations. However, the sheer number of senior citizens is substantial, currently around 157 million. This figure is projected to more than double, reaching 346 million by 2050, according to United Nations estimates.
Against this backdrop, the senior living sector in India is emerging as a dynamic industry, merging elements of real estate, hospitality, and healthcare. It encompasses three primary segments: independent living, assisted living, and skilled nursing care. Global trends further indicate a shift towards integrated care communities, aligning with the evolving needs of this demographic.
Key growth drivers fueling this sector include rapid urbanization, the rise of nuclear family structures, increasing disposable incomes, and internal migration. Additionally, growing awareness of age-related health issues and a changing societal perspective towards senior living are creating new avenues in this market. Notably, 26% of the elderly in India now live alone or in non-traditional family setups, amplifying the demand for specialized senior living solutions.
In an exclusive conversation with The Interview World, Dr. Samantak Das, Executive Director, Chief Economist, and Head of Research and REIS at JLL India, delves into the current trends shaping India’s senior living market. He explores the sector’s evolution, shares his vision for supporting the nation’s growing elderly population over the next 10 to 20 years, and highlights the critical challenges and opportunities for entrepreneurs in this space. Here are the key takeaways from his insightful discussion.
Q: What are the current trends shaping the market for senior citizens in India and how it has evolved over the period?
A: The concept of senior living was once a taboo in India. Frankly, families were reluctant to consider it, and seniors themselves were hesitant to move into such facilities. Back then, it was synonymous with fragmented and stigmatized old age homes. However, over the past decade, this sector has gradually evolved and is now on a promising path toward becoming more organized.
Today, senior living is not about old age homes but about vibrant communities where seniors can thrive in an intergenerational mix. This shift reflects a blend of diverse age groups, offering a more enriching lifestyle for older adults. The potential for this model to flourish in India is immense. Yet, affordability remains a significant challenge. Although the sector is just beginning to organize itself, the real hurdle lies in the operational costs, particularly healthcare and continuous care services.
Developing real estate for senior living can be made relatively affordable for the mid-segment, but the current offerings primarily cater to the upper-mid market. The core issue is not the real estate itself but the ongoing operational expenses. Managing these costs—especially those tied to healthcare and continuous support—is crucial for making senior living accessible.
One critical factor that could help is reducing indirect taxes for senior citizens on these services. A significant tax cut from the government’s side could substantially lower costs, making senior living more affordable for a broader segment of the population. This tax relief could be a game-changer for the sector’s growth and accessibility.
Q: Given the demographic shifts you’ve highlighted, how do you envision India’s approach to supporting its growing population of senior citizens over the next 10 to 20 years?
A: The attitude toward senior citizens is undergoing a significant transformation. Both the elderly population and their families are now viewing senior living in a new light. This shift in perception and branding marks a substantial change that could elevate the sector to new heights.
However, achieving this vision requires collaboration among all stakeholders. Senior care providers, developers, the government, banks, and financial institutions must come together to create a robust platform where senior citizens can truly thrive. This collective effort is essential for the sustainable growth of senior living communities.
While this evolution may not happen overnight, the groundwork laid today could yield impactful results within the next five to ten years.
Q: What are the key challenges you anticipate in this area, and how do you propose addressing them?
A: The first major challenge is financial. Reverse mortgages, for instance, have not gained traction in India despite efforts to make them more appealing. Several barriers are holding back their success, and these obstacles need to be addressed head-on.
The second challenge lies in government support. Authorities must allocate large parcels of land, not just for senior living but also for intergenerational projects that foster community. Addressing these issues requires focused efforts and strategic planning to create solutions that truly benefit all stakeholders.
Q: What opportunities do you see for entrepreneurs to enter this sector, and how can they contribute to addressing its emerging needs?
A: This represents a massive opportunity. With the market projected to reach $7.7 billion by 2030, entrepreneurs, investors, and private equity funds stand to gain significantly. In 2023, one senior living care provider raised $11 million, followed by another securing $9 million. Looking ahead, we expect this figure to rise to $20 million in 2024. While these investments are still in the millions, the potential to scale rapidly toward the billion-dollar mark is clear. The momentum is building, and it won’t take long for the sector to reach new financial heights.
