KOCHI: The state’s ageing population is drawing real estate developers, healthcare providers and hospitality operators into a market worth thousands of crores. At least 50 premium and semi-premium senior living projects are in the pipeline, with investments expected to exceed `5,000 crore. But industry insiders warn that the rush to cash in on the silver economy could outpace the systems needed to protect its most vulnerable residents.
A senior living facility is not just an apartment complex with grab rails and wheelchair access. Residents may move from independent living to assisted care, dementia management, and, eventually, hospice care. Buildings, staffing and services must evolve with them.
“When I started this 17 years back, it was purely a calling. I was not looking at the commercial possibility,” says Jiji Philip, managing trustee and CEO of Travancore Foundation, one of Keralam’s early entrants in the sector. Established as a non-profit in 2009, the foundation now has 273 residents at three locations in Kottayam, Kolencherry and Ernakulam. Two more facilities are under construction at Monipally and Pathanamthitta.
Jiji believes elderly care remains a low priority at the national level. He also points to the 18% GST on paid senior-living services, which places the segment in the highest slab under the two-rate GST structure introduced last September. As Keralam’s elderly population grows, he says, the sector needs greater policy attention.
Demographic demand
The demographic shift is stark. According to the Ministry of Statistics and Programme Implementation, Keralam had 58.53 lakh senior citizens in 2021, a figure projected to rise to 76.53 lakh by 2031. By 2036, people aged 60 and above are expected to account for 22.8% of the state’s population.
Outward migration of working-age people has added to the demand for professionally managed retirement homes, particularly among upper- and middle-income families seeking security, medical support, and companionship for elderly relatives. But active retirement communities and assisted living facilities are not the same business.
Joseph Alex, founder of Signature AgedCare, which runs assisted living, hospice, and geriatric care facilities in Kochi, says the distinction is crucial. “In the active retirement sector, 90% of people enter the segment with proper knowledge,” he says.
The stakes are higher in assisted care, where residents may be unable to challenge inadequate services themselves. Joseph cites the case of a woman who paid Rs 30 lakh to a retirement facility but did not receive the care she needed. Her children moved her to Signature AgedCare, but the refund has not been forthcoming.
“It’s a market with emotions attached,” Joseph says. Monthly charges can range from around Rs 30,000 to Rs 1 lakh for similar services, forcing some families to return to lower-cost providers when they find the fees unaffordable.
Health & hospitality
V Sunil Kumar, founder and managing director of Asset Homes, warns that developers cannot simply repackage conventional apartments as senior living homes. Age-friendly design requires slip-resistant flooring, accessible bathrooms, grab rails, wider corridors and space for wheelchairs. Facilities must also adapt to residents’ changing needs and be maintained to remain safe. “After a person attains 50 years of age, he will go through three or four stages. Each one is different,” Sunil says.
He sees the sector as a combination of healthcare and hospitality. “A senior living facility should have the expertise of both the hospitality and healthcare sectors,” he says, warning that inexperienced operators could compromise care standards.
Yet the investment pipeline continues to grow. Asset Homes has partnered with Columbia Pacific to invest more than Rs 500 crore in four senior living projects across Keralam, with around 1,000 residential units planned. Its first project is expected to be completed in early 2028. Palmcare Senior Living, coming up on six acres near the Thattekkad bird sanctuary in Kothamangalam, will have 400 apartments for more than 500 residents.
Babu Joseph, president of the Senior Living Association of Kerala (SLAK) and chairman and managing director of Palmcare Senior Living, says such amenities cannot replace professional care. “Senior living is a service industry,” he says. “My concern is that the service side of the business will be compromised when these real-estate players enter the senior living homes sector.”
Putting up guard rails
SLAK, which has 10 members, has submitted a memorandum to Chief Minister V D Satheesan seeking a regulatory framework. The association wants the new department of senior citizens welfare to introduce a streamlined permit system that verifies age-friendly design standards and a public registry requiring operators to disclose service terms, security deposits, exit clauses, and healthcare partnerships. It has also sought standardised care protocols and quality ratings based on established state guidelines for senior living and old-age homes. The aim is to protect residents from contractual breaches, sudden reductions in services and substandard care.
SLAK argues that regulation could also help Keralam attract global retirement investment and create skilled jobs in healthcare, hospitality, and allied services, positioning the state as an international senior living destination.
As the state marks World Hospice and Palliative Care Day on October 10, the question is no longer just how many retirement homes the state can build or how much investment it can attract.
The silver economy promises investment and employment. But without safeguards, the rush to build for the elderly could leave the business booming while the care falls short.
Upcoming projects
Asset Homes-Columbia Pacific: Investment of over J500 crore in four senior living projects, with around 1,000 residential units planned. First project expected to be completed in early 2028.
Palmcare Senior Living, Kothamangalam: A six-acre project near the Thattekkad bird sanctuary, featuring 400 apartments for more than 500 residents. Investment: J350 crore
Travancore Foundation: Two new facilities under construction at Monipally and Pathanamthitta. The non-profit currently houses 273 residents across three facilities in Kottayam, Kolencherry and Ernakulam.