According to Edelweiss CEO Radhika Gupta, the biggest challenge for senior citizens with property assets is the struggle to convert these assets into liquidity.
In a post on X, Gupta points to three common scenarios that hinder this process: “One case involves a tenant who refuses to vacate the house, making it impossible to sell. Another is the current property market, which isn’t conducive to a profitable sale. Lastly, some transactions involve all or mostly cash, which complicates matters for senior citizens who need liquid assets.”
Gupta in her post stresses on the need for seniors to prioritize liquidity as they age, noting that illiquidity risk poses a far greater problem than equity risk. “We often talk about reducing debt and equity risk for seniors, but the real challenge lies in the illiquidity of their assets,” she wrote.
India's senior living market is expected to grow substantially, from its current size of $2-3 billion to around $12 billion by 2030, driven by the country’s aging population. According to Colliers, the median age in India is projected to rise from 29 to 38 by 2050, with the proportion of people over 60 increasing from 11% to 21%.
This demographic shift is expected to create significant demand for senior care and housing facilities.
Colliers India notes that India's population pyramid is slowly shifting towards a more stable state, which presents a lucrative opportunity for private developers. The demand for senior living is particularly strong in urban areas, driven by factors such as higher income levels, rising life expectancy, changing lifestyles, and the increasing nuclearization of families. This demand encompasses not just housing but also services like medical care and insurance, which are crucial for a stable post-retirement life.