The world’s elderly population is surging and India is expected to be the fastest growing housing up to 17 per cent of the world’s elderly population by 2050, said a report by CBRE South Asia Pvt Ltd. In India, the segment is witnessing substantial growth, driven by favorable demographics, rising chronic conditions, and increasing awareness. And with the rising number of seniors seeking specialised care and lifestyle options, the demand for senior living facilities has surged significantly in recent years.
In its report ‘Golden opportunities from the silver economy – Analyzing the future of senior care in India’, CBRE said the senior care landscape is rapidly evolving on a pan-India basis, with 18,000 units spread throughout the nation. The southern region leads by contributing about 62 per cent to the overall supply in organized senior living & care segments and this is driven by several factors including higher affordability levels and a growing acceptance of nuclear family structures, as evidenced by a higher proportion of elderly living alone compared to the northern states.
Also, the southern states, per the report, offer prominent healthcare facilities, facilitating access to tertiary healthcare and fostering awareness of geriatric care services. The availability of trained staff, given the region’s focus on the healthcare sector, further enhances the quality of senior care. Major players in the senior care segment are concentrated in southern tier-I and II cities such as Chennai, Coimbatore, and Bengaluru and the future expansion of the senior care units by major players is concentrated in the cities of Chennai, Bengaluru, Hyderabad, Coimbatore, Pune & NCR.
The prominent zones other than south India include the north zone — comprising Haryana, Rajasthan, Uttarakhand, Uttar Pradesh, and Himachal Pradesh, which holds 25 per cent of the market share, said CBRE. Followed by the central zone, which includes Maharashtra, Gujarat, West Bengal, and Madhya Pradesh and accounts for 13 per cent of the senior living units. The distribution is sparse in northern and western regions, including cities such as Delhi-NCR, Pune, and Jaipur, with a limited presence of senior care players.
Per the report, the total estimated target for senior living facilities in 2024 is around 1 million, projected to increase to 2.5 million in the next 10 years. Currently, there are approximately 150 million elderly individuals in India, a number expected to rise to 230 million over the next 10-12 years.
The target population for senior living focuses on individuals aged 60 and above. India’s current penetration rate for senior living stands at less than 1 per cent, in contrast to countries like the UK, with an 11 per cent penetration rate, the US with over 6 per cent, and Australia with approximately 6.7 per cent. “This highlights India’s nascent stage in the senior living market, signalling significant room for growth compared to more mature markets where senior living is already well-established and growing steadily. The elderly care market has been establishing increasingly in India in recent years, particularly since the COVID-19 pandemic,” the report stated.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “India’s senior population is expected to experience a remarkable 254 per cent growth, making it the fastest-growing demographic segment globally. By 2050, India is projected to house up to 340 million seniors, constituting approximately 17 per cent of the world’s elderly population. India has experienced a significant surge in the number of senior living projects over the past decade, reflecting the growing acceptance and demand in this sector.”
“Developers in the segment are expressing optimism about the future of the senior living segment, highlighting the increasing demand for specialized care and lifestyle options among seniors. They recognize the market’s potential for sustained expansion and innovation, which is evident through their expansion plans, with a focus on increasing their presence in urban centers and tapping into high-income group households. The outlook for the segment is positive, with continued expansion expected in urban centres and tier-II cities. Developers are looking to capitalize on the growing demand by investing in new projects, enhancing infrastructure, and forging strategic partnerships to deliver comprehensive senior living solutions,” he added.
Rami Kaushal, Managing Director, Consulting & Valuation Services, India Middle East and Africa, CBRE, said, “The southern region has solidified its position as the preeminent area for senior living projects. This surge underscores the region’s pivotal role in the expansion and progression of the senior living sector. It mirrors the escalating demand for both independent and assisted living services, highlighting these urban centers as hotspots for opportunity and growth within the industry.”
As acceptance levels rise and affordability improves, the senior living segment is poised for sustained growth and innovation in the years to come.