Bengaluru: Primus Senior Living and HDFC Capital have partnered to create a ₹2,000-crore rental housing platform for senior citizens, boosting the senior living real estate asset class, which has seen significant momentum in recent years.
So far, Bengaluru-based Primus Senior Living has followed a build-and-sell model for senior citizens. Under the new rental-led platform, Primus will develop six properties across six cities—Bengaluru, Mumbai, Chennai, Hyderabad, Pune, and Delhi-National Capital Region (NCR)—along with projects in which apartments are built and sold.
“We are witnessing strong demand from seniors seeking active, independent and community-oriented lifestyles. HDFC Capital brings deep expertise in housing, patient capital and a long-term approach to sector building. Their conviction in the senior living opportunity reinforces our belief that this category is poised for significant growth and institutionalisation in India," Adarsh Narahari, founder and managing director, Primus Senior Living, told Mint in an interview.
Growth opportunity
India's organized senior living market is still developing, sitting at around 1.3%. This is lower than about 6% in the US and Australia. A joint report by JLL and the Association of Senior Living India predicts the sector will grow by 300% to reach $7.7 billion by 2030.
Narahari said that the projects under the new platform will combine hospitality and residential elements.
“There will be one and two-bedroom, fully furnished apartments with amenities that will be rented out under different packages. Each project will have around 200 homes,” he added. Primus will own and operate the projects.
Vipul Roongta, CEO, HDFC Capital, said the sector continues to face a shortage of long-term institutional capital for the development of purpose-built senior living communities despite favourable demographic trends.
“Through our partnership with Primus, we aim to build institutional-quality communities that support active ageing while establishing senior living as a scalable residential asset class in India,” he added.
The investment builds on HDFC Capital's strategy to be present across the entire housing spectrum. Within HDFC Capital's strategy of building professionally managed housing platforms, senior living is a key focus area, along with student housing and industrial worker housing.
Rising life expectancy, nuclear family structures and greater geographic mobility among younger generations are driving demand for professionally managed senior living communities.
Bengaluru-based Prestige Group is preparing to launch a premium senior living brand, entering a fast-growing real estate segment, Mint reported in April.
The developer has identified land parcels in Bengaluru for its first projects, with an inaugural development likely in north Bengaluru. The brand will be unveiled alongside the first project launch. Prestige is also setting up a dedicated senior living vertical and has hired experienced professionals to lead the business.
Unlike most developers, Prestige does not plan to sell senior living apartments. Instead, it will develop and operate fully serviced homes on a rental model, creating a recurring income stream.
Peers such as Brigade Group and Gopalan Enterprises have partnered with operators like Primus Senior Living to manage similar properties.