India, being the world’s fastest-growing economy for a decade now, has been bringing transformational changes in the lives of millions of its citizens, particularly its seniors. This assumes significance as India’s demographic landscape is undergoing a profound shift, with the share of elderly people aged 60 and above expected to surge from 8.6 percent of the population in 2011 to 19.5 percent by 2050, according to the Population Division of the United Nations’ Department of Economic and Social Affairs. In this backdrop, the country’s senior citizens are experiencing improved life expectancy to higher purchasing power parity and better awareness about investments which have led to a better quality of life post retirement for India’s nearly 14 crore senior citizens.

Unlike their predecessors, these individuals are independent, financially secure, well-travelled, and socially connected. They approach life, whether in retirement or not, on their own terms and challenge traditional ideas about senior living and aspire for a lavish and more fulfilling existence. While this bodes well for the overall economy, a micro view showcases a $10.15 billion market as of 2022 which is expected to grow at a CAGR of 10% over the next seven to eight months, states Association of Senior Living India.

As the senior population continues to increase, the demand for assets and support services including housing for senior living will persistently rise. These residential projects undertake a holistic approach to senior living with a focus on physical, mental and emotional well being. They offer a community based living with state-of-the-art services including 24*7 medical services, dedicated spaces for meditation and yoga and large green spaces for a healthy living. These projects which are also available on subscription basis are ushering in a new era in senior living in India.

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Senior living communities offer a range of amenities and activities tailored to the preferences and needs of seniors, enabling them to live independently while enjoying a social and active lifestyle. This includes access to fitness centres, cultural activities, educational opportunities, and social engagement. This trend is fast catching up in metros where developers understand the nuanced requirements of senior citizens and develop properties to suit their evolving needs. Furthermore, the mushrooming of new age startups in this space is offering a unique opportunity for developers to collaborate and provide new experiences in the senior living space. This is being supported by the government which is now offering funding to companies that are providing senior care and producing products for senior care.

Additionally, the ‘Atal Vayo Abhyuday Yojana (AVYAY)’ Grant is provided to NGOs or voluntary organisations for running and maintenance of Senior Citizen Homes (Old Age Homes), Continuous Care Homes, etc.

Developers and operators of senior living facilities have the opportunity to tap into this evolving market, potentially reaping substantial rewards. This growth potential is particularly attractive in light of the limited supply of senior living options in India. The country currently has only a fraction of the senior living facilities that are needed to meet the growing demand. This gap presents a significant opportunity for investors to enter the market and develop new senior living communities.

Investors too are increasingly recognising the potential returns in the senior living sector. As the demand for quality senior care and living options grows, so does the potential for profitable investments. As an investor, one can expect around 8-10% rental income with yearly escalations, depending on the various factors. These rental yields are much better in comparison to investments in the residential sector. Developers of assisted living societies enable this by providing the right kind of infrastructure which assures good care, medical and social well-being and making life simpler and seamless for the elderly, something they are ready to pay a premium for.

India can draw valuable lessons from developed markets like the United States, the United Kingdom, and Japan, which have well-established senior living industries.

The U.S. boasts approximately 30,600 assisted living communities with nearly 1.2 million licensed beds. Japan has a rapidly aging population, leading to innovations in senior care. The country emphasises community-based care, home care services, and technology-assisted solutions. Australia’s aged care system includes residential aged care facilities, retirement villages, and home care services and the country emphasises quality of life and personalised care. These countries have a mature ecosystem of senior living communities, services, and regulations. India can learn from these markets in terms of best practices, regulatory frameworks, and innovative senior living models.

As India continues to undergo demographic changes, the senior living sector is poised for growth and innovation. Developers and investors in India have the opportunity to create a diverse range of senior living options to cater to different preferences and economic backgrounds. Additionally, India can develop affordable senior living options to cater to the needs of low- and middle-income seniors. Technology integration, healthcare services, and sustainability measures are some of the areas where global senior living communities are making strides. Incorporating these trends can help India develop a modern society.

(By Vineet Surana, Managing Director, Rishabha Constructions. Views are personal)