Why India Must Prioritize Senior Living Real Estate as an Essential Sector?

Developers Push for Priority Sector Status to Boost Affordability

Leading real estate developers specializing in senior living projects have urged the Indian government to classify the sector under priority lending to unlock lower-interest financing.

This move would significantly reduce development costs, making senior housing more accessible and affordable for India’s aging population.

Rationalizing GST to Ease Financial Burden on Seniors

The industry has called for GST parity between assisted living centers and hospitals to reduce financial strain on developers and residents. A proposed 1% GST slab for senior living projects, similar to affordable housing schemes, could make these facilities more viable and appealing for investors.

“The cost of assisted living must be lower, and taxation should align with hospitals. This will expand supply and significantly enhance the quality of life for seniors,” said Ankur Gupta, Co-founder, ASLI (Association of Senior Living India).

Waiving Stamp Duty & Registration Fees to Accelerate Growth

The sector has requested stamp duty and registration fee waivers on land purchases and joint ventures (JVs) for senior living communities. This initiative could incentivize private sector investments, accelerating the expansion of quality senior housing infrastructure.

“Reducing stamp duty burdens will encourage developers to invest in purpose-built senior living facilities, ensuring seamless transitions from hospitals to assisted living centers,” said Adarsh Narahari, Founder & MD, Primus Senior Living.

Potential Impact on India’s Senior Living Real Estate Market

Increased Affordability – Lower financing costs and tax benefits would lead to more budget-friendly senior housing options.

Higher Investor Interest – Easier access to credit and tax incentives would attract domestic and international institutional investors.

Rapid Sector Growth – Incentives could push more developers into the segment, leading to a rise in quality senior-friendly projects.

Improved Healthcare Integration – Assisted living centers under hospital-grade GST would create a seamless continuum of care for seniors.

Boosted Private Sector Participation – Stamp duty waivers and tax incentives would reduce barriers to entry, ensuring faster project execution.