Market Trends of India Senior Living Industry
Increasing Investments in the Senior Living Sector
The COVID-19 pandemic made Indians realize the need for assisted-care homes, which increased the demand in the country's senior living market. In addition, many elders who stayed in joint families are now opting to live in senior living homes. Both these factors resulted in the demand for residential complexes for senior citizens.
To meet the increasing demand for senior living in the country, the Government of India announced a scheme called Atal Vayo Abhyuday Yojana (AVYAY) for 2021-2022. Under this scheme, the government offers a society where senior citizens live a healthy, happy, empowered, dignified, and self-reliant life, along with strong social and inter-generational bonding.
Under the AVYAY scheme, the government is investing more than INR 530 crore (USD 642.87 million) in the welfare of senior citizens. From this budget, more than INR 300 core (USD 363.89 million) are invested in seniors living under the Shelter and Health for Senior Citizens scheme, which includes the Integrated Programme for Senior Citizens (IPSrC) and State Action Plan for Senior Citizens (SAPSrC) programs.
In addition, the projects under IPSrC include Senior Citizen Homes 25, Senior Citizen Homes 50, Continuous Care Homes and Homes for senior citizens with Alzheimer's disease/ Dementia, and Regional Resource and Training Centers. More than 180 projects were initiated under this scheme, and 1,75,800 senior citizens benefit from these programs and projects.
The Southern Part of the Country is Expected to Witness Growth
Southern cities in India, such as Bengaluru, Chennai, Kochi, and Coimbatore, are emerging as hubs for senior living communities, followed by the western and northern regions. This growth is driven by pleasant climatic conditions, improved connectivity, and the presence of prominent healthcare providers. In addition, southern cities contribute to more than 70% of senior living projects in the country, which include communities such as independent living, assisted living, skilled or nursing care, and continuing care retirement communities.
Furthermore, in 2021, the developers of senior housing communities operated their businesses through outright purchases or sales, leases or rentals, and the hybrid model (includes both sales and leases). For instance, Bengaluru is one of the prominent cities in India that use the outright purchase model. In contrast, other cities such as Coimbatore and Chennai have a combination of outright purchases and leases to meet customer demand.
Most of the sales in the southern part are observed from medium-end projects, with prices ranging from INR 40 lakh (USD 48,518) to INR 50 lakh (USD 60,648). Meanwhile, high-end projects also contributed to the sales growth in the senior living sector by offering large apartments or villas with particular attention to healthcare, hospitality, and design elements for older adults looking to live in a comfortable and lavish lifestyle post-retirement.
