Summary of this article
Senior living market may cross Rs 1 trillion.
Current supply meets only 1.3% of demand.
Smaller cities could drive future project launches.
The Indian senior living market is poised for a sharp expansion. This expansion is expected to target Tier II and Tier III cities, where it is expected to play a growing role in driving the segment’s growth over the course of the next four years.
As per the latest report by Colliers, the senior living segment in the real estate industry in India is projected to cross Rs 1 trillion by 2030; this is nearly four times the current size of around Rs 300 billion. This growth is supported by the growing ageing population in India, as well as rising life expectancy, nuclearisation of families and even growing awareness around health and wellness for the aged. The segmentation of Indians aged 60 years and above is expected to rise from the present 11 per cent to 21 per cent by 2025, creating a significant long-term requirement for housing and care solutions for people fitting these criteria.
Demand-supply gap creates opportunity
Despite the rising demand, organised senior living remains at a very early stage, especially in India. As per the report, Colliers estimates that the current demand is at around 10-11 lakh units, while organised senior living inventory stands at only 25,000 units. This reveals a penetration rate of nearly 1.3 per cent. By 2030, the demand for senior living units is expected to reach 20 lakh units. On the other hand, the organised supply can increase to around 1 lakh units. This reveals that a significant demand-supply gap is most likely to remain, with the gap projected to reach 4 per cent.
This expansion is significant in attracting capital. Colliers said more than Rs 13,000 crore has been committed by the developers and investors since 2025, with funds expected to be deployed over the next three to four years. The investments could support an additional 75,000 units being included in the senior living segment.
Why smaller cities are gaining traction
While Tier I cities dominate organised senior living stock, Tier II and III cities are emerging as attractive destinations. Colliers expects these markets and spiritual hubs to account for around 30 per cent to 40 per cent of new senior living project launches going forward. Cities like Coimbatore, Puducherry, Dehradun, Tirupati, Ayodhya and Vadodara are gaining developer interest to pursue this segment. These locations offer comparatively lower real estate and living costs.
The appeal here is linked to changing preferences among senior citizens, who seek communities that combine independent living with healthcare.
