Senior Living Demand In India Expected To Grow From 1.7 To 2.3 Million Households By 2030: ASLI-JLL Report

As the senior population in India is expected to double from 10 per cent to around 20 per cent by 2050, the silver economy is also expected to grow. There would be a higher demand for elderly-related goods and services. The report "Elevating the Golden Years 2.0," by the Association of Senior Living India (ASLI) and JLL, highlights the potential of the senior living (housing) sector and the emerging trends in this space.

It emphasises that with the growing number of older adults, which is expected to reach around 346 million by 2050, the demand for senior living solutions will rise, especially from financially independent seniors in urban areas. The report estimates the demand to increase from around 1.7 million senior living units in 2025 to 2.3 million units by 2030. 

This means that to meet the demand, the supply needs to be increased, too. However, the current landscape shows that supply is less than the demand. As of June 2025, the organised supply stood at 22,157 units. It shows that the occupancy in the established and well-managed projects is strong between 80 per cent to 85 per cent, and stresses the potential demand for "professionally operated communities". 

To bridge this imbalance between supply and demand, more capital infusion is required, says the report. It estimates the market valuation to reach USD 8 billion (approximately Rs 69,400 crore) by 2030 under the policy-led penetration approach. Under this approach, the report assumes that a national policy framework to incentivise development, similar to Maharashtra's incentive policy to enhance investor confidence, along with fast approvals and low-cost financing, might improve supply. Of the different scenarios to improve penetration in the senior living market, it finds policy-led initiatives to be the most viable option, with projected penetration to around 2.5 per cent (around 34,600 units supply) by 2030.

According to the report, the senior living market currently follows the traditional sale model in which developers can recover their capital quickly. However, there is a need to shift to the service-based rental or lease model for sustainable revenue for developers and affordability and flexibility for seniors.

It points out that the rental model is common in the US and Canada, whereas the leasehold or deferred management fee (DMF) model is common in the UK, Australia, and New Zealand, where residents pay lower upfront costs and operators receive DMF, a percentage of the resale value of such a unit.

One of the challenges in this segment is the shortage of geriatric caregivers and nurses, where work can be done to increase such staff. The other challenge is the affordability of senior housing for the middle-income population due to high land, construction, and operational costs. 

But at the same time, it throws light on the economic empowerment among seniors, the growing focus on wellness and healthcare, technology use in healthcare, and a cultural shift from "isolated, age-segregated retirement enclaves towards integrated, intergenerational townships". These factors are positive for the senior living market. 

The report brings forth the growth potential of the senior living segment and the challenges on the way to cater to the prospective demand. With the increasing elderly population, it is crucial to work out options that ensure their dignity, health, wellness, and independence.