KOCHI: Kerala’s silver economy — comprising products and services catering to people over 50 — is gathering pace, with senior living facilities springing up across the state as demographic shifts, migration and changing family structures redraw the contours of ageing.
With children increasingly settled abroad and joint families giving way to nuclear households, organised senior care is no longer a fringe concept. Backed by favourable climate, affordable cost of living and strong healthcare ecosystem, the state is fast positioning itself as a preferred retirement destination — for Keralites, other Indians and even foreigners.
“There is a demographic shift — with increasing life expectancy, decreasing birth rate and migration. The elderly population is growing in the state. This includes people from different strata: Marginalised, middle and high classes. So there is a requirement to improve the facilities and prioritise the sector,” said Babu Joseph, president of the Senior Living Association of Kerala (SLAK).
“People, even those who stay outside the state, prefer to spend their retirement life in Kerala. We have a better medical system with improved facilities and service, which adds to the shift,” he added, pointing out that demand for senior care is outpacing supply.
The trend is backed by numbers. According to a recent Reserve Bank of India study, Kerala’s elderly population is projected to rise to 20.9% by 2031 and 22.8% by 2036 — among the highest in the country.
Sensing the opportunity, the state government has moved to place senior care among its priority sectors. In his recent policy speech, Governor Rajendra Arlekar highlighted the potential of the silver economy, calling for Kerala to leverage its ageing population by transforming longevity into an economic advantage and positioning the state as a hub for “graceful ageing”.
Healthcare affordability, higher health awareness and climate are also drawing retirees from outside India to the state. “The trend indicates that the state is becoming age-friendly,” said Biju Mathew, director and state head of HelpAge India. “Assisted-living homes started mushrooming in Kerala around a decade ago. Now these established centres are being expanded to tier-two towns. The climate, infrastructure, affordable cost of living, and awareness attract more people, particularly foreigners, to the state.”
The scale of Kerala’s dominance is striking. According to Elderly Care India, a non-profit online resource, the state has 754 senior-care homes across 14 districts with a combined bed capacity of 38,000 — accounting for 31% of the country’s total. A March 2025 report by Credai and KPMG noted that 62% of India’s organised senior living inventory is concentrated in South India, led by Kerala, Tamil Nadu, Telangana and Karnataka.
Call for regulation
“There is no wonder that many companies are coming to Kerala, launching senior-living facilities and investing in the state. More companies will come to Kerala,” Babu said. “We have developed our own effective and indigenous system of senior care.” However, he cautioned that regulation has failed to keep pace with growth.
“We need a system for the government to review and monitor the functioning of the assisted living centres in the state. Proper guidelines, checks and controls should be formulated to ensure better infrastructure and quality services. Standardisation of rates should also be introduced based on the grading and services provided, so the sector does not become purely business-oriented,” he said.
Senior living homes typically operate on either an outright purchase or refundable security deposit model. “The cost ranges from `30 lakh to `70 lakh based on services. Around 80% of the amount is refundable after the demise of the resident,” Joseph said, adding that about 15 new senior-care homes have been registered with SLAK in the past two years.
Premium players are also entering the market, with several senior living service providers launching centres in Kerala as demand grows, particularly for paid and premium communities driven by children residing abroad.
Training caregivers
Workforce availability remains another concern. The Kudumbashree Mission has launched caregiver training programmes, but experts say more structured interventions are needed. “These initiatives are innovative.
Most of the time, trained people leave our country for Germany or the UK,” Biju said. “More initiatives should be launched. There is a requirement, and Kudumbashree units and other agencies should step in to train compassionate and skilled caregivers.”
With Ernakulam and Thrissur emerging as major hubs, entry costs for retirement homes in Kerala now range from `25 lakh to `60 lakh, while premium and eco-friendly options can exceed `1.5 crore.
As Kerala ages faster than the rest of the country, the silver economy is no longer a future promise — it is already reshaping the state’s economy. The challenge ahead lies in ensuring that rapid expansion is matched by regulation, quality care and dignity for the elderly.