Senior living market to reach $8 billion by 2030, ASLI-JLL report shows

Rising elderly population, policy push and investor interest to drive demand

With the rise in elderly population and increasing interest around the segment by developers, the senior living industry is poised to reach a market size of $8 billion by 2030 from the current $1.8 to $2 billion, according to a report by Association of Senior Living in India (ASLI) and JLL.

 

The report stated that this rise will be driven by an increase in India’s senior population from an estimated 163 million in 2025 to 191.5 million projected for 2030, coupled with a relatively lower market penetration, leaving scope for higher growth potential.

 

While the total organised supply currently stands at around 22,000 units as of June 2025, the report said the potential demand for such homes is projected to be at 1.7 million units for 2025.

 

“This demand-supply gap presents an opportunity for strategic investors in one of India’s most vibrant emerging sectors,” Karan Singh Sodhi, senior managing director- Mumbai MMR and Gujarat, and head for alternatives at JLL India.

 

The sector is already witnessing robust investments, with nearly 20 deals in the last 18 months alone. Investment ticket sizes have crossed ₹100 crore, new investors have signed up, and the target portfolio has diversified.

 

Premium senior living facilities are experiencing strong performance, with occupancy rates consistently maintaining 80 to 85 per cent. 

 

The demand for such homes is expected to rise to 2.3 million units by 2030, with market penetration expected to rise to 2.5 per cent of the total addressable market from about 1.4 per cent in 2025.

 

The report added that around 14,900 senior living homes are likely to come up by 2030 with an estimated cost of ₹26,000 crore or $3 billion if project launches continue at current pace in the organised market.

 

This comes at a time when several industry players in the segment have been reaching out to state governments to adopt senior living policies, as introduced by the Maharashtra government where the developer gets benefits on stamp duty, GST and parking.

 

The developers are also pushing for an assisted living policy so that they do not have to take licences for nursing homes to run a care home for those who have come out of the hospital post treatment.

 

Industry executives also highlighted challenges such as high valuation of land and construction costs, along with a lack of skilled care givers to go ahead with the projects.

 

To counter this, the industry has asked for a national policy to boost investor confidence and incentivised development by assuring low cost financing and fast track approvals. “This should include single-window clearances, clarity in registration and incentives for global best practices in safety and service quality,” the report stated.

 

It added that updated financial regulations, such as providing financial independence to the senior population through reverse mortgage loans (RML) and enabling long-term loans by classifying senior projects as infrastructure status can facilitate growth.

 

“While as many as 70 per cent seniors remain financially dependent even today, the right financial and insurance innovation can help unlock the economic opportunity presented by India’s demographic evolution,” Rajiv Mehta, chairman at ASLI and managing director and chief executive officer (CEO) at Antara Senior Care, said.

 

As a result, the senior living demand could increase to 25,500 units at a cost of ₹39,000 crore or $4.5 billion in case of accelerated growth, where increased interest from institutional investors could improve project viability.