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Southern cities account for nearly 68% share of senior living housing market in India: Report

A report by JLL titled The Rise of Senior Living Market in India has said that the independent living units dominate existing supply with 84 percent market share and 2 BHK units account for around 43 percent of the present senior living supply

November 15, 2023 / 17:11 IST
The senior living market penetration in India is less than 1 percent, as compared to over 6 percent in mature markets like the US.

The senior living market penetration in India is less than 1 percent, as compared to over 6 percent in mature markets like the US. In India, southern cities account for a significant share of the senior living market at approximately 68 percent, followed by 14 percent in the west, 10 percent in the north, 4 percent in the east, and 2 percent in central India.

Senior living projects command an average premium of around 10-15 percent over regular residential pricing due to customised amenities for seniors, a new report has stated.

A report by JLL titled "The Rise of Senior Living Market in India" has said that the independent living units dominate existing supply with 84 percent market share and 2 BHK units account for around 43 percent of the present senior living supply.

The report said that the projected increase in the share of senior population is from around 10 percent in 2023 to around 20 percent by 2050, resulting in an increased age dependency ratio of around 34 percent by 2050. The report identifies the top senior living operators, including Columbia Pacific Communities, Vedaanta Group, Ashiana Group, Paranjape (Athashri), Primus, Antara, Covai Care, and Prarambh Buildcon, holding a combined market share of over 50 percent in the overall supply.

India's relatively early stage in the development of the sector presents a significant opportunity for growth as the senior population share is projected to double by 2050, the report noted.

Factors driving the need for senior living include the rise of nuclear families, increased mobility for career opportunities, growing demand for medical services, and changing views towards the asset class. While home care services for seniors have gained popularity in recent years, offering a comprehensive ecosystem of medical care, wellness, and social bonding opportunities remains challenging. As a result, bespoke senior living communities are gaining acceptance and popularity, the report said.

To facilitate market expansion, government support in the form of insurance and subsidised loans is crucial for buyers of senior living projects. Additionally, developers require incentives and policies from the government to tap into the growing trend of early retirement in India, similar to the mature senior living markets.

"By 2050, the elderly population in India is projected to reach 20 percent, resulting in an increased age dependency ratio. Leading senior living projects indicate that 84 percent of the existing supply consists of independent living units, with a preference for outright sale models. Additionally, about 43 percent of the supply comprises 2 BHK units, reflecting the prevailing product typology.” said Jerry Kingsley, head of Strategic Consulting and Value and Risk Advisory, India.

Moneycontrol News
first published: Nov 15, 2023 11:13 am

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