NEW DELHI: Numerous developers are delving into senior living projects in Gurgaon, Faridabad, Panchkula, and various key markets in Haryana following an amendment by the state cabinet to the retirement housing policy. This change allows for an increase in permissible floor area ratio (FAR) to 3 via transferable development rights (TDR).
This development empowers builders to create more units, thereby enhancing project viability.
“This amendment is timely. In Gurugram, there’s a noticeable shift where families are viewing senior living as a conscious, planned choice rather than merely a fallback option,” stated Rishabh Periwal, Senior Vice President at Pioneer Urban Land & Infrastructure Ltd. “Increased FAR gives developers more flexibility to create integrated communities with essential support systems for senior residents,” he added.
The policy modification is set to establish a more structured pipeline for senior living projects.
“The new retirement housing policy will enhance project viability and encourage developers to engage in this senior living niche,” remarked Anil Godara, Founder and Managing Director of J Estates. “The rise in FAR makes land usage more efficient, allowing developers to include necessary amenities like healthcare and recreational facilities within the same project.”
Several factors are propelling the demand for senior living, including increased life expectancy, the rise of nuclear families, reliance on NRIs, and seniors seeking independence.
“This trend is also driving premiumisation in the segment, where today’s seniors are looking for not just housing, but curated communities that promote dignity, wellness, and engagement,” Godara noted. “Moving forward, policy support combined with shifting consumer expectations will be crucial for unlocking the full potential of this sector.”
Kreeva, the luxury real estate arm of Kanodia Group, has entered a joint venture to develop a multi-generational housing project over 3 acres, with a built-up area of around 550,000 sq ft. Expected to require an investment of Rs 350-400 crore, the development will feature roughly 200 residences, including units specifically for senior living.
DLF Ltd is also venturing into this market, planning a project of 500,000 sq ft in Gurgaon, with a projected revenue of Rs 2,000 crore. This project is in advanced planning and approval stages.
Prominent developers such as Hiranandani, GMR, Prestige, JK Urbanscapes, and Stonecraft are also either entering or planning to enter the senior living market to satisfy demand.
According to UNFPA estimates, India has over 150 million people aged 60 and above, accounting for 11% of the total population, which is projected to exceed 347 million, or 21%, by 2050.
A survey by the Association of Senior Living India and PwC revealed that 85-90% of industry leaders are optimistic about the sector’s growth over the next 15 years, with most planning to invest, diversify, and expand services.
In the past 18 months, nearly 20 deals have occurred in this sector, with investments surpassing Rs 100 crore, attracting new investors.
Premium senior living facilities are experiencing occupancy rates between 80-85%. However, the segment has only a 1.3% penetration rate, significantly lower than the 6% reported in markets like the US and Australia, showcasing substantial untapped potential.
