The demographic dividend that India intends to exploit, on its stated intent, to be the third largest economy in the world would suffer a major loss, if living for senior citizens is not included into the plans today. Countries like Japan, Monaco, Italy, Germany etc. are consciously wrapping their policies around their aging population. While many developed nations have a third of their population over the age of 60, India’s elderly population is likely to rise to 41% over next decade and expected to touch around 194 mn.
India is progressively moving from the joint family to nuclear family system, where, in most urban families, both husband and wife go to work. The bonding between grandparents and grandchildren is not the same. Middle class Kerala is a good case study, socially as well as for real estate. The vacancy rate of built-up homes is high, senior citizens live alone while their children are working outside the state. There’s very little ‘Senior care’ infrastructure – accommodation, health and social. Thus, there is an ardent need for comfortable senior living, where they do not have to fear the consequences of living by themselves. To top it, senior living is mistaken for old age home.
Old age homes were an act of charity, wherein shelter was attempted to be provided to the homeless, destitute or senior citizen who weren’t cared for, by their progeny. It did not help the cause, since successive governments did not form any law to encourage a life of dignity for the aged through. There was lack of self-sufficient living in senior living facilities, coupled with the ‘Stigma of being accommodated in Old age homes.’
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Residential real estate has a huge scope to tap this very important segment in India and provide a comfortable living. The need is to look at senior living like an infrastructure project, rather than a real estate project. It is a lifestyle that seniors plan in advance, rather than a shelter provided on compassionate grounds. It is real estate as a service, with healthcare, social needs, shelter, food, activities and total care. Individuals aged 60 or above rose from 5.6% in 1961 to 10.1% in 2021, with projections indicating a rise to 13.1% by 2031. Thus, for the industry players who look at business profits, this segment can yield good business numbers and profits, as the percentage of ageing population is high and come with huge disposable income. A huge number of senior citizens invest in real estate, as a plan for comfortable living post-retirement.
There is hardly any supply of senior living facilities in India. Well intended policies and regulations can draw large private sector investment into this sector. From baseline to benchmark, India should treat ‘Senior care facilities’ like infrastructure projects, wherein supply does not play catch up to demand.
Let’s not forget, a burgeoning middle class today would be seniors in the next two decades. By 2050, elderly individuals will outnumber the younger population globally for the first time, and developers must prioritize them in their decision-making processes. Real estate design and delivery should wrap around the wisdom, experience and social needs of our citizens. Senior living is a category in itself, not a subset of charitable existence.
(By Ramesh Menon, Founder Director, Delhi Consortiums. Views are personal)