Senior housing demand is on the rise; is it a necessity or a luxury?

The pandemic has impacted all sectors of the economy but post-pandemic things have changed to a great extent. Interestingly, there has been a jump in the demand for senior living housing. 

As per the recent report by the National Statistical Office (NSO), the elderly population (aged 60 and above) in the country is projected to touch 194 million in 2031 from 138 million in 2021, a 41 per cent increase in a decade. The demand for senior living projects is expected to rise multifold over the next 4-5 years.

According to Ankit Aggarwal, MD, Devika Group, the main reasons behind this are attracting financing options available, availability of plenty of land and space to build bigger complexes to make it more attractive. He said that thousands of senior citizens choose to play life's final innings on their own terms and a host of serviced housing projects are enabling them to have a comfortable space to spend life with dignity.

The trend of seniors moving into cities with low densities is also contributing to its growth, he said, adding that it creates opportunities for developers to create new projects in markets, where there is less competition. 

Ankit said that Vrindavan town, 180 km from Delhi, in Uttar Pradesh is the most sought-after destination as the demand is massive. 

According to a PTI report, southern cities account for a major share of the senior living market in the country. The hotbeds cities such as Coimbatore, Bangalore, Chennai leading the pack and the north is dominated by Delhi-NCR, Dehradun, followed by Pune which is the most sought-after retirement destination in western part of the country.

He said that lack of quality healthcare, safety, boredom, managing household help and cooking everyday are some of the key inconveniences these centre solve for elderly people. 

Adarsh Narahari, Managing Director, Primus Senior Living, said that there is a deep understanding of the benefits of living in a retirement community and the changing mindset of new India has propelled the growth.

The overall population growth rate indicates that the senior population will grow at a much faster rate at 3.8 per cent versus 2 per cent of the overall population.

The demand for senior living facilities is hugely untapped in India. A perceptible shift has been observed in the living pattern of seniors. Over 60 per cent seniors live on their own with less than 40 per cent are above 65 years of age living in joint families.