Senior living rents touch ₹1 lakh, retirement homes valued at $8.4

Notably, 34% of upcoming projects are in Tier 2 cities like Coimbatore, Vadodara, and Goa-emerging as the next senior living hubs.

India’s senior living segment is set for a massive transformation, with investment potential between $4.8 billion and $8.4 billion ( Rs 410–720 billion) over the next five years, according to Savills India’s latest report, Living the Years That Count. The surge is being driven by India’s rapidly ageing population, projected to reach 21% of the total population by 2050, and increasing demand for organised, health-integrated retirement communities.

 

India currently has over 155 million people aged 60+, a number expected to double by mid-century. Unlike the past where old-age homes were seen as last resorts, today’s seniors are demanding autonomy, wellness, community engagement, and access to medical care—without sacrificing comfort. Developers are responding by creating purpose-built environments focused on both care and lifestyle.

 

  

Demand, Design, and Dollars

According to the report:

 

• Independent living units dominate the market with a 90–95% share.
• Monthly rentals for senior living residences range between Rs 25,000 to Rs 1 lakh, depending on the level of care and amenities.
• Outright purchase prices for 1–2 BHK units range from Rs 45 lakh to Rs 2 crore in metro cities, and Rs 25 lakh to Rs 80 lakh in non-metro cities.
• Leading operators like Antara, Columbia Pacific, Ashiana Housing, Primus, and Athulya are developing models across the spectrum—independent, assisted, and memory care.

 

Non-Metros Emerging as HotspotsInterestingly, 34% of under-construction senior living projects are in non-metro cities like Coimbatore, Vadodara, and Goa, where property is more affordable and lifestyle factors like air quality and community ties are better. According to Savills:

 

• South India leads with 68% of senior living projects.
• Cities like Dehradun, Coimbatore, Pune, and Kodaikanal rank highest in terms of accessibility to healthcare and transit, making them ideal retirement destinations.

 

Global Inspiration, Local Innovation

The report draws on global best practices from the US, Japan, Australia, UK, and New Zealand, where integrated models and policy support have made senior living more inclusive. In India, however, the focus is still skewed toward premium housing. Experts suggest rental and lease-based models could help make senior living more accessible for middle-income retirees.

 

Policy Push and Investment Appeal

India’s senior living sector remains under-regulated. The report calls for:

 

GST relief on senior living services

 

Priority sector status

 

Subsidised loans and viability gap funding

 

A dedicated regulatory framework

 

Strategic investments are already flowing in:

 

Max India: $25.6 million

 

Rainmatter & Gruhas: $20 million

 

Morgan Stanley India Infra Fund: $11 million

 

Even large developers like Godrej Properties are entering via partnerships, with Pioneer Urban launching IGBC Platinum-certified projects.

 

The Opportunity Ahead

Savills outlines three market scenarios:

 

Conservative: 1.25% of seniors adopt structured living → USD 4.8 bn investment

 

Moderate: 1.5% adoption → USD 6.5 bn investment

 

Optimistic: 1.75% adoption → USD 8.4 bn investment 

“Bharat is leading the way in shaping the future of senior living, with tier-2 cities driving the shift through affordable housing, healthcare, and thoughtfully designed communities. With over USD 8 billion in projected investment and the Government’s growing policy push, this is one of India’s most transformative infrastructure opportunities with the path forward focused on building inclusive ecosystems that enable dignified and comfortable ageing,” said Arvind Nandan, Managing Director, Research & Consulting, Savills India. 

Some other key takeaways from the report are: -

 

• The rapidly ageing Indian population - projected to reach 21% of its total population by 2050 is driving an urgent need for purpose-built senior living
• The market is evolving from real estate-only models to design-led, lifestyle ecosystems with barrier-free architecture, biophilic design, and integrated wellness features
• South India dominates supply, with 68% of all projects concentrated in the region while North India shows the highest non-metro balance, with 50% of projects located in non-metro cities