CREDAI-KPMG Report Launched at New India Summit Recommends PMAY-Like Grants in Senior Housing

India’s senior population is expected to more than double, increasing from 157 million in 2024 to 346 million by 2050. This demographic shift means that over 20.6% of the country’s total population will be elderly, highlighting the need for a structured approach to senior living beyond traditional care homes. The CREDAI-KPMG report, launched at the New India Summit in Nashik, emphasizes the urgent need for policy interventions, including tax incentives, rental housing schemes, and financial support for developers to meet the rising demand for senior housing.

Current State of Senior Housing in India

India’s organized senior living inventory is currently limited to just over 21,000 units, with a significant concentration in the southern states. Cities such as Coimbatore, Bengaluru, and Chennai account for 40% of the total senior living units, while southern India overall represents 62% of the market. Despite the increasing demand for senior housing, supply remains insufficient.

The demand for dedicated senior living communities is rising due to factors such as longer life expectancy, increasing nuclear families, and the need for secure and well-equipped living spaces for the elderly. However, high development costs, lack of incentives, and limited awareness about senior living solutions have slowed down the expansion of this sector.

Policy Recommendations to Support Senior Housing

The CREDAI-KPMG report suggests several policy measures to strengthen the senior living segment and make it more accessible for a larger population.

Tax Incentives for Developers

One of the key recommendations is providing tax credits under the Goods and Services Tax (GST) for developers engaged in senior housing projects. Reducing GST rates or offering tax exemptions could encourage more private developers to invest in this segment.

Additionally, property tax rebates for senior citizens should be expanded and made uniform across states. Currently, different states have varied policies regarding property tax benefits for the elderly, leading to inconsistencies in affordability. Standardizing these rebates would help reduce financial burdens on senior citizens.

PMAY-Like Rental Housing Schemes

The report advocates for rental housing programs modeled on the Pradhan Mantri Awas Yojana (PMAY) to make senior living more accessible, particularly for low- and middle-income groups. Under such a framework, developers focused on affordable senior housing could receive financial assistance from the government.

Encouraging rental models rather than outright property ownership could also make senior living more viable for a broader demographic. Many elderly individuals prefer rental housing over purchasing a property, as it allows them financial flexibility and access to facilities without long-term commitments.

Growth Potential of the Senior Living Market

Globally, the senior living market was valued at approximately $190 billion in 2020 and is projected to reach around $375 billion by 2030. The Asia-Pacific and Middle East regions are expected to be among the fastest-growing markets, with compound annual growth rates (CAGR) of 11.2% and 8.4%, respectively.

India has the potential to emerge as a key player in this sector, provided there is sufficient policy support and investment. Given the rising life expectancy and the evolving preferences of senior citizens, the market for well-designed, service-oriented senior housing communities is expected to expand significantly.

Infrastructure and Financial Challenges

Expanding senior housing requires high-quality infrastructure and skilled manpower to manage and operate such communities. The CREDAI-KPMG report highlights the importance of developing financial products tailored to the needs of senior citizens, such as:

• Reverse mortgages: Allowing senior citizens to unlock the value of their homes while retaining ownership.
• Senior-friendly insurance options: Offering health and property insurance plans specifically designed for elderly residents.
• Long-term savings schemes: Creating financial products that support post-retirement living costs.

Additionally, the report emphasizes the need for clear policies regarding asset transfers. A structured framework for property inheritance, lease agreements, and financing options could increase confidence in senior housing investments.

Need for a Holistic Approach

Senior living should not be limited to basic housing but should integrate healthcare, social engagement, and security features. The report suggests that modern senior living communities should focus on:

• Medical care and emergency services within the housing complex.
• Recreational and social engagement programs to promote an active lifestyle.
• Security and accessibility features such as wheelchair-friendly pathways, elevators, and emergency call systems.

This approach would require collaboration between the government, private developers, and financial institutions to create sustainable senior living solutions.

Industry Perspective 

Boman Irani, President of CREDAI, emphasized the need for a forward-looking strategy to develop the senior living sector. He stated that the focus should be on creating a sustainable, inclusive, and well-planned ecosystem that caters to the needs of the ageing population.

Chintan Patel, Partner – Deal Advisory and Head of Building, Construction and Real Estate at KPMG in India, highlighted the importance of government intervention. He stressed that clear policy frameworks, financial incentives, and skilled workforce development are essential for making senior housing more accessible and viable.

The CREDAI-KPMG report presents a clear roadmap for strengthening India’s senior living sector. By introducing tax benefits, rental housing schemes, and structured financial products, the country can address the growing demand for senior-friendly housing.

As India’s elderly population continues to rise, the need for affordable, well-planned, and service-oriented senior living communities will become more pressing. Implementing the recommended policy measures could help establish a robust senior housing market, ensuring a better quality of life for senior citizens while contributing to economic growth.