India's senior living sparks market surge: A new era of independence and investment

For many people entering their senior years, independence is no longer about living alone, but about living well with the right support. Senior citizens are making their own housing choices, looking for homes that allow them to stay active, feel secure and live on their own terms. Senior living communities are therefore no longer viewed as a last option, but as a conscious lifestyle choice and a viable real estate investment. This change is steadily influencing how developers, investors and non-resident Indians (NRIs) look at India’s housing market.

Soaring demand

Senior living remains a relatively smaller segment within India’s residential market, but demand has been building steadily over the past few years. The pandemic brought renewed attention to the realities of ageing, healthcare access and everyday support needs.

“Covid-19 reshaped the future of the senior living segment in India, as the pandemic highlighted the urgent need for specialised senior care communities. Demand has been ramping up since then. However, even today, there is only limited supply in this segment. The senior living sector in India is still at a very nascent stage,” says Santhosh Kumar, Vice Chairman, Anarock Group.

According to Anarock estimates, market penetration remains low at about 1.5 per cent, significantly lower than levels in mature markets. At the same time, the opportunity size is expanding fast. The senior living market is currently valued between INR145 billion (Dh5.8 billion) and INR155 billion. By 2030, demand is expected to touch 2.3 million units, translating into an INR645 billion opportunity.

Who is buying and investing

Alongside market growth, the buyer profile is changing. According to Ashiana Housing, a leading developer of senior housing communities in India, senior citizens are increasingly driving purchase decisions.

“The primary buyers today are end users, senior citizens themselves, with families playing a supporting role in decision making,” says Ankur Gupta, Joint Managing Director, Ashiana Housing.

“This marks a clear shift from earlier years when homes were largely bought by children as a care arrangement. Seniors today are financially independent, socially active, and consciously choosing senior living for autonomy, safety, and companionship,” Gupta says.

Kumar points out that overseas Indians continue to influence demand, especially where long-term care planning is involved. “NRI families are very interested in this asset class to care for their parents back home in India,” he says. In many cases, NRI children initiate the process to secure dependable living environments, while seniors actively participate in the final decision.

Investor interest has also increased, particularly from long-term capital that understands the service-led nature of senior living and the importance of steady occupancy over speculative gains.

Operating model and returns

Senior living differs sharply from conventional residential real estate because it is driven as much by services as by physical assets.

Kumar stresses that this makes experience and intent critical. “Seasoned is a key term here because senior living is not every developer’s cup of tea for various reasons related to expertise, experience, bandwidth, and business philosophy,” he says.

Once communities stabilise, their performance profile also differs from mainstream housing. “Senior living projects generally see steadier sales velocity and higher long-term occupancy once communities are established,” says Gupta.

While sales cycles may be more consultative and time-intensive, occupancy tends to remain stable because residents are end users rather than short-term investors. “Compared to conventional housing, returns are less speculative and more predictable, driven by sustained demographic demand,” explains Gupta.

Design, services and pricing

Design expectations in senior living have moved well beyond basic accessibility. Kumar says projects focus on safety, social interaction and healthcare integration, with care options such as assisted living, dementia and chronic care within the same campus.

Gupta explains how this translates into product and pricing. “Senior living units typically range from compact one bedroom homes to larger two bedroom formats, designed for ease of movement and low maintenance,” he says. Prices vary by city and project, with Ashiana’s senior homes generally ranging from INR 5.5 million to INR 22.5 million.

“Residents also pay a monthly service charge that covers maintenance, housekeeping, emergency response systems, basic healthcare support, and community activities,” he adds.

Top destinations

Southern India continues to anchor the segment. Kumar says that over 60 per cent of senior living projects are located in the region, with Chennai emerging as a key hub due to healthcare access.

Along with Chennai, demand is now spreading to other prime locations as well. Nadar says Tier I cities such as Bengaluru, Hyderabad and Kolkata remain important, while Tier II cities are gaining traction due to ease of living and lower infrastructure stress.

“Leading developers are actively foraying into cities such as Ahmedabad, Surat, Coimbatore, Kochi and Panaji. Even spiritual hubs such as Vrindavan, Ayodhya, Dwarka and Rameswaram have witnessed traction in recent years,” says Nadar.

Nadar expects developers and investors are likely to broaden their offerings, expand into newer markets and cater to evolving demand preferences. “Private equity firms can emerge as key players in the segment, consolidating fragmented portfolios and drive acquisition of smaller players. Moreover, as global players venture into the Indian market, the segment is likely to witness enhancement in terms of innovation, business models and pricing strategies,” he says.