The rise of silver generation: Transforming the senior living landscape

The global senior living market, valued at approximately USD 190 Bn in 2020, is poised to double to USD 375 Bn by 2030, driven by shifting demographics and rising life expectancy. The silver economy comprising older adults as active economic participants has emerged as a powerful force for economic and social transformation. No longer merely recipients of care, older adults are increasingly contributing to economic growth. By fostering innovation, inclusive policies, and sustainable infrastructure, the silver economy presents a unique opportunity to reshape societies for a more resilient and adaptive future.

India is poised to play a crucial role in this evolving landscape. By 2050, India is projected to account for 16 per cent of the global population aged 60 and older approximately 346 Mn seniors out of an estimated 2.1 Bn worldwide. While this percentage is lower than some countries, India’s sheer population size makes this shift economically and socially significant. This demographic wave will profoundly impact healthcare, social services, and economic policies, making senior living a critical sector for national development.

Unlocking the Potential of India’s Senior Living Sector

India’s senior living sector is at a nascent stage but holds immense promise. Cities such as Pune (1.2 Mn seniors) and Bengaluru (1.03 Mn seniors) are witnessing robust growth in senior demographics, while Chennai, Kolkata, Coimbatore, and Hyderabad have shown steady increases. However, large untapped markets in northern and central regions remain underdeveloped due to cultural preferences for family caregiving and limited supply of senior living facilities. Bridging this gap will require tailored solutions that align with the diverse needs and aspirations of Indian seniors.

Adopting global best practices will be key to unlocking India’s senior living potential. This includes, centralised and localised policy frameworks, innovative rental and ownership models, flexible financing options and incentives, seamless integration with healthcare providers.

Operating Models Driving Growth

The senior living sector offers diverse operating models, each with unique benefits and challenge

Outright Sale Model

The most preferred option, providing tangible ownership and long-term capital appreciation

Pure Rental Model

Gaining gradual acceptance, this model offers steady income for developers and greater flexibility for seniors

Leasehold Model

Popular in countries like Australia and the UK, this model involves paying a lower upfront entry fee for accommodation, with a portion of the fee retained by the operator as a management fee, typically deducted when the resident vacates the unit or upon resale. This helps balance affordability with stability

Currently, 84 per cent of India’s senior living supply caters to independent living designed for active seniors, while 16 per cent serves assisted living needs. However, skilled nursing facilities for seniors requiring continuous medical support are limited in scale. This is because the demand is relatively low and depends on individual cases, typically arising only in chronic conditions requiring constant support.

Creating a Sustainable Ecosystem

Realising India’s senior living potential requires a collaborative effort among policymakers, developers, investors, and operators. Government support through tax incentives, subsidised land, and regulatory frameworks will be critical in attracting private investment and making senior housing more accessible and affordable.

To truly make an impact, India’s regulatory framework must address, diverse medical needs and care requirements also ensuring quality in the same time, affordability across income groups, inclusive community building models. By blending global best practices with India-specific solutions, the senior living sector can create a sustainable, equitable, and future-ready ecosystem empowering older adults to lead healthier, more fulfilling lives while driving economic growth.

The time to act is now. With the right vision, partnerships, and policies, India can unlock the immense potential of its aging population and position itself at the forefront of the global silver economy revolution.