Growing elderly population, healthcare integration and changing family structures
The report said demographic changes are emerging as the biggest growth driver for the sector. India's population aged 60 years and above is expected to rise from 153 million in 2020 to 347 million by 2050, increasing the elderly share of the population from 11 per cent to 21 per cent. The old-age dependency ratio is also projected to more than double during the same period.
Despite the demographic shift, organised senior living remains significantly underpenetrated. The report estimated market penetration at 1 per cent, compared with 11 per cent in the United Kingdom, adding that India would require nearly 2.4 million purpose-built senior living units by 2030 to meet future demand.
The report attributed rising demand to changing family structures and urban migration, with more elderly people living independently. It noted that 26.7 per cent of urban senior citizens now live alone, increasing demand for communities offering healthcare access, security, social engagement and assisted services.
Developers are increasingly integrating healthcare into residential projects through partnerships with hospitals, telemedicine platforms and wellness programmes. New projects are also incorporating physiotherapy centres, emergency response systems, preventive healthcare services and digital health monitoring.
Independent Living Leads Market
Independent living remained the largest segment, accounting for 64.5 per cent of the market in 2025. However, assisted living is expected to record the fastest expansion, growing at a 27.35 per cent CAGR through 2031, driven by increasing demand for higher levels of medical and personal care.
By business model, outright sale (freehold) projects accounted for 62.7 per cent of the market in 2025, while long-lease and rental models are projected to expand at a 26.62 per cent CAGR over the forecast period. Residents aged 65-74 years accounted for 41.9 per cent of the market in 2025, while the 75-85 years age group is expected to witness the fastest growth.
Southern Markets Continue To Dominate
Southern India continues to account for the largest share of organised senior living supply. Bengaluru held a 19.2 per cent market share in 2025, supported by established healthcare infrastructure and relatively higher acceptance of retirement communities.
The report projected Hyderabad to record the fastest growth through 2031. It added that developers are also expanding into Delhi NCR, Mumbai, Pune and other large urban centres as demand broadens beyond traditional southern markets.
The report said cultural preferences for family-based elderly care and limited awareness about modern senior living communities continue to restrain wider adoption, particularly in smaller cities. However, increasing participation by organised developers, improving consumer awareness and greater integration of healthcare services are expected to support long-term growth.
It added that the sector is attracting investor interest because of high occupancy levels, recurring revenue potential and the growing convergence of residential real estate and healthcare services.
