India is top ranked country in terms of inbound remittances

With current population of over 0.1 billion seniors in India, there is a significant untapped opportunity for investment and development in the senior living sector.

In contrast to some of the developed economies, India is still in the early stages and therein lies the opportunity, says a survey by JLL on senior living in India.

Senior population’s share in overall India population is expected to reach 20 per cent by 2050 from current 10 per cent in 2023; this significant increase in share will result in increased “age dependency ratio” which is likely to reach 34 per cent by 2050.

They are financially stable, well-travelled, socially connected, and possesses distinct preferences regarding how they wish to spend their post-retirement years. This presents an opportunity for developers, operators, service providers and entrepreneurs.

Senior living properties in India command an average premium of 10-15 per cent over regular residential pricing as a result of the amenities and services.

India is top ranked country in terms of inbound remittances, in 2022 the remittances stood at $111 billion with 19.6 per cent increase from 2021.

They prefer overall residential segment. Tier 1 cities preference include Chennai, Bangalore, Mumbai, Pune, Delhi and Tier 2 cities such as Kochi and Mysore. The average ticket size is Rs 10-15 million to as high as Rs 30-35 million.

NRI’s do invest in high–end senior living projects. They or their parents may not be the end users, but they do buy properties as an investment and may rent them out to end users in India. The share of NRI investors in senior living segment is said to be between 5 to 10 per cent.

Most of the investments in senior living were in Maharashtra followed by Kerala, Tamil Nadu, Delhi and, Karnataka with a ticket size of Rs10-15 million.

The holding period (the average ownership tenure of NRIs in the Indian Residential Market) – 5 Years +. The origin of investors is from GCC countries, Singapore, Hong Kong, USA and Canada. They prefer tier 1 branded developers and the size of the market is said to be 10,000+ units. While the market maturity is still in its nascent stage, the penetration rate is less than 1 per cent.

Currently, almost half of the senior living projects in India are in the range of Rs4,000 to Rs6,000 per sq. ft.

However, the premium projects are priced above Rs8,000 per sq. ft. having a share of 18 per cent in the market. Furthermore, high-end projects have also played a significant role in driving sales within the senior housing market. In India, a limited number of operators are present in this segment. Overall, the top 10 operators have a combined market share of more than 50 per cent.

As per National Institute of Health India (NIHI), 7.4 per cent of elderly population is affected by dementia. Senior living communities offer a solution such that caregiving is taken care of while still ensuring round the clock connectivity.

UNFPA highlighted that nuclear families accounted for 52 per cent of households in India. Metro regions are witnessing a greater prevalence of nuclear families, with 54 per cent in comparison to 51 per cent in rural areas, indicating a shift towards this family structure in senior care dynamics.

Southern cities in India hold a significant share of 68 per cent, of the senior living projects in the country. Growing demand for senior housing in India can be attributed to various factors including increasing life expectancy, lower mortality rates, rising nuclear families, changing social stigma associated with senior living, and overall improvement in the global standard of living.