India’s ageing population reshaping housing, healthcare investment demand!

Mumbai: India is ageing at a pace the market is only beginning to recognise. The country is home to over 160 million people aged 60 and above, and this number is projected to cross 190 million by 2030, according to UNFPA estimates. In effect, nearly 19,000 Indians turn 60 every day, quietly reshaping demand patterns across housing, healthcare, and services.

Data from the Longitudinal Ageing Study in India shows that life expectancy at age 60 is over 18 years, meaning many Indians now spend close to two decades in post-retirement life. This extended phase is no longer passive; it involves sustained spending on housing, healthcare, wellness, and support services.

Yet supply remains limited. Organised senior housing and care formats currently cater to barely 1–2 percent of the addressable population, despite an estimated requirement of 18–20 lakh senior-friendly housing units nationwide. This gap has turned senior living from a social obligation into a viable economic model, offering longer tenures, predictable cash flows, and lower volatility than traditional residential real estate.

Geographically, southern India continues to lead adoption, but Tier II cities are emerging as key growth centres, driven by lower land costs, improving healthcare access, better air quality, and proximity to family networks.

As India’s demographic curve steepens, ageing will increasingly influence how cities are planned, how housing is designed, and where capital flows. The business of senior living reflects a broader reality: ageing is an economic force shaping the future of India’s built environment.

Talking to Bizz Buzz, Anatharam Varayur, Co- founder, Manasum Senior Living, says, “Many seniors today are thinking ahead about how and where they want to live, placing greater emphasis on independence, familiarity, and everyday comfort. With average life expectancy at age 60 exceeding 18 years in India, planning for these decades is becoming more critical than ever.”

The senior living industry alone is estimated to be ~$8 billion by 2030 (JLL – ASLI report). A recent survey by ASLI and PwC shows that 85-90 per cent of industry leaders are highly optimistic about the sector’s growth in India over the next 15 years, with most planning active investment, diversification, and service expansion.

With the sector projected to grow ~20 per cent annually to nearly $50 billion by 2030, India must pair scale with compassion.

“We believe that with innovation, collaboration, and supportive regulation, senior care in India can set new benchmarks” said Ankur Gupta, Co-Founder, ASLI & Joint MD Ashiana Housing.

The economics of ageing are quietly reshaping multiple industries.

Mohit Mittal, CEO, MORES a proptech consultancy firm, says, “By 2050, nearly one in five Indians will be over the age of 60, yet organised senior living still caters to a small fraction of this population. This gap itself explains why ageing is no longer just a social concern, it is becoming a strong economic opportunity.”

For developers, operators, and policymakers, the message is clear.

Robin Pahuja, Co-Founder & Managing Director, ElitePro Infra says, “The Indian real estate market in 2026 is likely to witness a positive and steady growth, mainly because of strong demand from the end-user segment, a considerable influx of institutional funds, and favorable government policies.”

This segment is the most essential one for the recognition and support offered by the Indian authorities. The commercial segment in the Indian market is said to stabilize in terms of office space leasing to the tune of 70-75 million sq. ft. The segment is expected to witness the increased support offered by the GCCs and the flexibility offered by the FSWs. In India, the shift toward quality is expected to benefit both ESG-focused developments and high-end, premium spaces. Alternative property segments like logistics, data centers, and senior living and co-living spaces will witness the influx of institutional funds in the Indian market. India has witnessed the growth of support for restructuring the Indian GST.

Abhishek Raj, Founder and CEO, Jenika Venture says, “The Indian real estate sector in 2026 looks forward to substantial growth, supported by government policies, technology, and increased institutionalisation.”

The ‘flight to quality’ phenomenon shall continue, with a preference for ESG-rated and prime office spaces. Alternative property categories such as logistics realty, data centers, co-living, and senior living are expected to witness substantial institutional investment, largely because of the demographic shift and the growth of online e-commerce.

The recent GST reforms, such as simplified rates and a reduction in rates for construction materials, would help in reducing costs and making it more transparent, instilling investor confidence. Combined with other proposed measures such as RERA, development of infrastructure, online land record management, and sustainability norms, this sector shall finally witness more organization and professionalism.

The upcoming budget looks forward to fixing boundaries for affordable housing, home loan tax deductions, GST reforms, and sectoral recognition, further kick-starting this sector in the year 2026.