Senior Living Communities Are Gaining Popularity: Is It India's Next Big Real Estate Opportunity?

India's real estate sector is witnessing the rise of a new niche, senior living communities, placing senior citizens at the centre of attention. With the country's ageing population projected to reach 319 million by 2050, developers are increasingly investing in projects that offer homes designed for comfort, convenience, and community.

Traditionally, most Indian seniors prefer living with their families. Now, many of them seek independence and a lifestyle built on their own terms. For them, senior living communities have emerged as a meaningful alternative, offering a blend of autonomy, safety, and social connection.

As senior living communities are still in their growth phase in India, a key question arises: could these spaces be the hidden gem of the real estate market for investors? Let's explore.

How Much Senior Citizen Living Has Grown?

India is the home to world's second-largest senior population, which is likely to grow phenomenally to 346 million by 2050. As of now the senior living community spaces have around 1.3% of market penetration, according to a report by JLL.

Now, the estimated target market for senior living facilities is likely to grow from 1.57 million in 2024 to 2.27 million by 2030, noted the report.

"Over the past five to seven years, this segment has grown steadily, driven by changing demographics, increased life expectancy, and rising awareness. Real estate developers are now recognizing it as a distinct and viable asset class with long-term potential," stated Dhiren Tharwani, Director, Tharwani Realty.

Why Senior Living Community Is Seeing Surge In Demand?

The senior citizen living community segment has developed significantly over the past few years. Currently, there are nearly 25,000 senior living units, and the market valuation is predicted to exceed Rs 12,000 crore by 2026, according to Keshav Mangla, GM Business Development at Forteasia Realty.

The trend, according to Aman Gupta, Dirеctor, RPS Group, is "propelled by urbanisation and financial independence of the elderly."

"We are witnessing a gradual but meaningful cultural shift, particularly in urban and semi-urban areas. Today's senior citizens are far more independent, financially secure, and health-conscious than ever before. Many are actively seeking communities that can offer them comfort, safety, healthcare access, and like-minded companionship all while maintaining their dignity and autonomy," explained Tharwani.

Which Cities Have Emerged As the Hub For Senior Living Community?

"Pune, Bengaluru, Chennai, Coimbatore, Hyderabad, and Delhi NCR are among the cities where the senior retirement living real estate market has increased dramatically. These metros along with Tier 2 cities such as Vadodara and Kochi are the most attractive for their clean and well-established health infrastructure, weather, and the proactive approach of developers in meeting the needs of the elderly," explained Anurag Goel, Director at Goel Ganga Developments.

Senior Living Community: What Are The Challenges In Growth?

Unlike any other real estate project, senior living community spaces come with their own unique set of challenges, whether it is designing age-friendly infrastructure, or ensuring 24x7 medical support or meeting emotional and social needs.

"One of the biggest hurdles is the lack of standardised regulations or dedicated policy support for this segment, which can make planning and execution more complex. There's also the perception challenge, many still associate senior living with old-age homes, which needs to evolve into the understanding that these are wellness-oriented, lifestyle-driven communities," highlighted Tharwani while advocating for government support via policy incentives, simplified approvals, and financial benefits.

Growth of these real estate segment requires partnership with healthcare providers, hospitality experts, and technology firms to create a favourable ecosystem for senior citizens.

"Several challenges face real estate companies in the creation of senior living communities: the cost of the land is high in urban areas; the care facilities are in a regulatory gray zone; there is a lack of design experience for the elderly; and the societal biases that a senior living is just another name for a traditional old-age home continue to exist," explained Pramod Kumar Gupta, Director of Kadamashree Developers India LLP.

Amid plenty of challenges, the segment is poised for a growth in the coming years, as affluent senior citizens are choosing to spend on themselves for their comfort in their 60s and 70s.