Hyd stares at huge senior living supply gap

‘‘If Hyderabad captures 8% to 10% of the national senior housing market expansion, its senior living segment could potentially become a Rs 10,000 crore to Rs 15,000 crore asset class by 2035 -B. Jagannath Rao, President-Elect, CREDAI Hyderabad

Hyderabad: Hyderabad’s senior living market is poised for significant expansion over the next decade, with demand for organised retirement communities potentially reaching 40,000 to 50,000 homes by 2035, according to B. Jagannath Rao, President-Elect, CREDAI Hyderabad.

Rao said the city currently has only around 1,200 to 1,800 operational dedicated senior living units, against an immediate addressable demand estimated at 15,000 to 20,000 units. “This reveals a current supply deficit exceeding 85%,” he said.

The organised senior living market remains small nationally too, with India having around 25,000 organised units. Southern cities, including Hyderabad, Coimbatore, Chennai and Bengaluru account for more than 60% of the national supply, he informed. However, Hyderabad is emerging as one of the fastest-growing markets. “Mordor Intelligence research indicates that Hyderabad is projected to lead Indian metros with the highest senior-living market CAGR of 22.99% during 2026–31,” Rao said.

A major driver of the market is the growing involvement of NRIs. “Enquiries driven by non-resident Indians, primarily based in the US, UK, Australia and the Middle East, form the backbone of high-ticket senior housing demand in Hyderabad,” he said.

According to industry estimates, 50% to 65% of enquiries and purchases in organised senior living developments in Hyderabad are initiated directly by

NRI children buying homes or booking long-term leases for their ageing parents. Rao said the market is also undergoing a major change in perception. “Traditional multi-generational living norms created a deep cultural hesitation around retirement communities. Senior housing was often misperceived as an ‘old-age home’ or a sign of family abandonment,” he said.

“But this perception is rapidly shifting as families recognise these developments as lifestyle-driven independent communities,” he added.

Another challenge is lack of awareness about the different senior living products. “Many prospective buyers fail to distinguish between basic rental care facilities and modern, self-contained residential retirement resorts offering wellness, security and social integration,” Rao said.

Land costs are another constraint. “Soaring land values in core urban corridors such as Gachibowli, Jubilee Hills and Banjara Hills force developers to place large-acreage senior living projects in peripheral belts,” he said.

Historically, these locations lacked easy access to tertiary healthcare facilities, which remain a key priority for seniors.

Rao said senior living also requires expertise beyond conventional real estate development. “Senior living requires a dual expertise—real estate construction and long-term healthcare/hospitality management,” he said.

“Historically, developers lacked reliable specialised care operators to manage the post-handover operational life cycle,” he added, pointing to operators such as Columbia Pacific, Primus and Saket.

Independent living currently dominates demand, accounting for around 64.5% of the market, according to industry research cited by Rao. “Buyers, both seniors and NRI children, prioritise active retirement options with wellness programmes, clubhouses and community engagement,” he said.

At the same time, “buyers increasingly demand Continuing Care Retirement Communities,” he said. Such communities allow seniors to move from independent living to assisted living, specialised nursing and memory care within the same campus as their needs evolve.

Senior living homes in Hyderabad are estimated to cost Rs 65 lakh to Rs 1.5 crore for one and two-bedroom units, depending on the location and project. Rao said these units generally command a 10% to 20% premium per sq ft over conventional homes because of specialised infrastructure such as wheelchair-friendly designs, panic buttons, wider corridors, anti-skid flooring and dedicated medical bays.

Monthly maintenance and care charges typically range from Rs 25,000 to Rs 50,000, covering food, basic nursing care, housekeeping, security, emergency response systems and lifestyle activities.

For location, Rao sees potential in ORR-linked areas including Kompally, Shamirpet, Medchal, Rajendranagar, Maheshwaram and the Vijayawada Highway, apart from Tellapur, Mokila and Kollur.

“These locations balance proximity to the IT corridor and healthcare infrastructure with sufficient land acreage for low-density green campuses,” he said.

Developers are also beginning to enter the segment. Rao said groups such as Saket Group, Primus and Veda, along with national brands evaluating local partnerships, are introducing hybrid or dedicated senior living models.

Around 2,500 to 4,000 units are currently in planning or early construction stages, while private equity and developer capital expenditure directed towards Hyderabad’s senior living pipeline over the next five years could reach Rs 2,000 crore to Rs 3,500 crore.

Rao estimates that Hyderabad could require 2,500 to 4,000 new senior living units every year over the next five to 10 years. “Rapid expansion of the elderly population, shifting nuclear family structures and high NRI demand from children seeking organised, managed living for parents in Hyderabad” will drive the market, he said.

He expects policy support to accelerate development. “Clear master plan land allocations specifying senior-housing concessions, including higher FAR/FSI allowances for projects incorporating healthcare infrastructure,” are needed, Rao said.

He also called for “single-window fast-tracking” of projects meeting accessibility standards, reduced GST on senior living maintenance and healthcare management services, and specialised RERA guidelines to ensure long-term operational continuity. “Senior housing is an essential emerging niche that will transition into a mainstream asset class over the next decade,” Rao said.

“If Hyderabad captures 8% to 10% of the national senior housing market expansion, its senior living segment could potentially become a Rs 10,000 crore to Rs 15,000 crore asset class by 2035,” he noted. With India’s senior population expected to approach 20% of the total population by 2050, Rao believes the shift from conventional retirement homes to professionally managed senior communities could become one of the more significant changes in the residential real estate market.

ABOUT THE AUTHOR

Srikanth Godavarthi

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