The irony is unmistakable. With the surge in elderly population, almost everyone agrees senior living is a “golden opportunity” waiting to be tapped. Yet, a majority of real estate developers have avoided the segment.
Consider this: The Niti Aayog says the country’s elderly population, which currently comprises a little over 10% of the population — about 104 million — is projected to reach 19.5% by 2050. According to a report by JLL and the Association of Senior Living India (ASLI), the penetration of senior living players is just 1.3% in India against 6% in the US and Australia, showing the huge market potential. The market for senior living facilities will grow from 1.57 million households in 2024 to 2.27 million by 2030, the report says, adding that the senior living market is expected to grow 300% to reach $7.7 billion (Rs 64,500 crore) by 2030.
“This could be one of India’s most transformative infrastructure opportunities with the path forward focused on building inclusive ecosystems that enable dignified and comfortable ageing,” said Arvind Nandan, managing director, research & consulting, Savills India, a property consultant.
But the huge opportunity that these reports indicate seems to have escaped the attention of large developers who are still waiting in the sidelines, mainly due to sluggish sales, lack of awareness and after-sales service hassles.
Senior living projects in India
Only a dozen — mostly relatively smaller players — operate in the space. And there are less than 70 senior living projects, developed or ongoing, across the country. Of this, more than 60% are in tier 2 & 3 cities, according to Anarock Property Consultants.
“Senior living is not a straightforward real estate play. It calls for a number of ancillary skills, commitments and investments which do not necessarily align with every developer’s business model,” said Anuj Puri, chairman, Anarock.
Puri said unlike most regular housing projects, where the developer’s responsibility ceases once they have handed over to the housing society, the developer of a senior living project must stay intricately involved throughout the project’s life cycle. Also, it involves having to partner with specialist healthcare agencies, he said.
But players like Ashiana Housing have taken these problems in their stride. Senior living contributes over 30% of total sales, accounting for Rs 350 crore sales in FY25. The target for FY26 is Rs 450 crore. Ashiana has delivered five projects so far and is looking to run 5-7 senior living projects across 6-7 key locations. “Our expansion plans include deepening our presence in Bangalore and keeping a close watch on opportunities in Delhi-NCR.
Additionally, we are exploring land deals in high-potential markets like Mumbai-Pune and Chennai,” Ankur Gupta, joint managing director at Ashiana Housing, said. “The developers who do get into senior living know what they’re doing and are aware of and aligned with the extra responsibilities and involvements such an undertaking calls for,” he said.
Pune-based Paranjape Schemes claims it has become the largest developer of senior living in the country. Paranjape launched a dedicated brand called Athashri in 2000. While it has a strong presence in Pune, the company has also expanded its operations to Mumbai, Thane, Bengaluru, and Vadodara. According to Paranjape, the company has completed 16 projects, offering 2 million square feet for around 4,000 seniors. They currently have three ongoing projects that will add 1,000 more apartments.
Another developer Bricks and Milestones is planning to develop dedicated senior living communities on the outskirts of Bengaluru, starting with areas such as Doddaballapura and the foothills of Nandi Hills.
These projects will include assisted living with access to healthcare and daily support services, memory care units for dementia and Alzheimer’s patients, and tech-enabled solutions such as emergency alert systems and smart homes tailored for senior-friendly living, said Kiran Venugopal, CEO and founder of the company.
“This segment will see strong momentum in India because the demand is not just practical, it is deeply personal. Today’s seniors are more financially secure, healthy and open to new lifestyles,” Paranjpe said.
Main challenges of senior living facilities markets
Ashiana’s Gupta, however, said slow sales and a robust after-sales services are the main challenges in the segment. “The sales are not very upfront, they happen slowly as the project progresses. So if, as a developer, you’re used to very upfront sales, then you won’t like this product,” he said.
Managing the senior living after-delivery is also a big challenge because consumers’ expectations have seen a surge for the kind of money they are paying. He said like Maharashtra and Haryana, higher floor space index or FSI should be allowed for senior living projects.
The Niti Ayog report called for a single window approval for senior living projects which will expedite the pace of execution, resulting in faster completion and possession. “Typically, a 4-5-year development cycle is not a desirable condition forseniors,” it said.