by THO
India’s senior population is expected to more than double from 157 million in 2024 to 346 million by 2050, accounting for over 20.6% of the country’s total population. This demographic shift highlights the urgent need for a more structured and inclusive approach to senior living—moving beyond traditional care homes, according to a report launched by CREDAI-KPMG at the two-day New India Summit in Nashik, Maharashtra.
The report outlined key policy recommendations, including tax incentives for developers, property tax rebates for senior citizens, and rental housing schemes modelled on the Pradhan Mantri Awas Yojana (PMAY) to address the rising demand for senior housing.
Size of senior living segment in India
According to the report, India’s organized senior living inventory currently stands at just over 21,000 units, with southern India leading the market, accounting for 62% of existing projects. Key cities such as Coimbatore, Bengaluru, and Chennai alone contribute approximately 40% of the total senior living inventory.
Globally, the senior living market was valued at approximately $190 billion in 2020 and is projected to reach around $375 billion by 2030. The Asia-Pacific and Middle East regions are expected to be among the fastest-growing markets, with compound annual growth rates (CAGR) of 11.2% and 8.4%, respectively.
Also Read: Can you afford senior living housing? Key factors to consider before investing
Recommendations for senior living sector
The report suggests introducing tax credits under the Goods and Services Tax (GST) for developers constructing affordable senior housing. It also advocates for state-specific targeted rent subsidy programs to make senior housing accessible to low-income groups.
Additionally, the government could provide financial support through initiatives such as PMAY to developers focusing on affordable senior housing. The report recommended expanding property tax rebates for senior citizens and ensuring uniformity across states. Additionally, establishing a structured framework for asset transfers could boost demand for this segment.
“Looking ahead, our vision should be to create a dynamic and resilient senior living sector that meets current market demands and anticipates future needs. By fostering innovation, sustainability, and inclusivity, we aim to build communities that enhance the quality of life for senior citizens. With adequate support and strategic planning, we can transform this sector into a pillar of societal well-being and economic advancement,” said Boman Irani, President of CREDAI.
Chintan Patel, Partner – Deal Advisory and Head of Building, Construction, and Real Estate at KPMG in India, highlighted the need for high-quality infrastructure, skilled manpower, and financial products tailored for seniors, such as reverse mortgages and appropriate insurance options.
“Government intervention is crucial in creating a well-defined policy framework, offering incentives and subsidies for developers, and making senior living more accessible for end users,” Patel added.
