Senior Living Sector Seeks Budget 2026 Policy Boost

Ahead of Budget 2026, senior living real estate players are seeking targeted policy support as demand rises with India’s ageing population.

Key asks include formal recognition of senior living as a core real estate segment, infrastructure status, and pension-linked, tax-efficient products to help seniors convert retirement savings into a steady monthly income for living and care needs.

A key demand is the creation of pension-linked, tax-efficient financial products that allow seniors to convert their retirement corpus into predictable monthly payouts to support living and care expenses.

Key Highlights

• Sector seeks infrastructure status and asset-class recognition
• Push for pension-linked, tax-efficient income products for seniors
• Reverse mortgage reforms and insurance coverage flagged as priorities

Such mechanisms, they argue, would address the biggest affordability gap in senior care, where monthly costs often far exceed returns from traditional savings instruments, while also providing operators with stable cash flows to scale responsibly.

Rajit Mehta, MD and CEO of Antara Senior Care, highlighted the need to strengthen reverse mortgage norms, allowing seniors to unlock up to 80 per cent of their property value across city tiers.

“This would significantly enhance financial independence for seniors while enabling them to age with dignity,” he said.

Rajagopal G, Co-founder and CEO of Serene Communities by Columbia Pacific, said the sector is at an inflexion point and requires formal recognition as a distinct asset class, separate from conventional real estate or hospitality. Such recognition, he said, would bring regulatory clarity, encourage responsible investment and enable frameworks aligned with the evolving needs of older adults.

Shreya Anand, Director, Vedaanta Senior Living, noted that seniors are increasingly seeking autonomy, dignity and meaningful engagement rather than just basic care.

Ishaan Khanna, CEO of Antara Assisted Care Services, noted that investor interest in senior-friendly healthcare and assisted living infrastructure is rising, reflecting growing awareness of India’s ageing population. However, he cautioned that capital alone cannot create a sustainable ecosystem.

“This momentum needs to be supported by comprehensive policy provisions, particularly around insurance coverage for long- and short-term assisted living and at-home care,” Khanna said, describing it as a major affordability barrier for families.

Subhankar Mitra, independent consultant and former MD of Colliers India, said policymakers should look beyond healthcare benefits and address the larger issue of predictable cash flows for seniors.

“The government can consider creating pension funds where payouts are either routed directly to senior care institutions or structured as assured monthly support,” Mitra said.

“These pension-backed models, often supported by sovereign frameworks, enable seniors to convert their savings into steady income streams,” he said, noting that large global investors actively participate in such funds. Introducing similar age-linked, tax-efficient pension products in India, restricted to individuals aged 60 and above, could significantly improve affordability and financial security for seniors, while strengthening the senior living ecosystem, he said.

Also Read: DLF Expands Portfolio with Senior Living Homes in India

Real estate experts say it is equally important to strengthen geriatric care in rural and semi-urban areas, increase investment in senior-safe public spaces, improve public transport design, and create more age-friendly employment opportunities that keep seniors engaged and included.

Source: Hindustan Times Real Estate