11 October, 2023
Unlock the doors to real estate success
Read time: 5 minutes

In today's edition:

  • In the news: Luxury homes, stressed assets, and solar storms
  • My thoughts on: retirement communities
  • Q&A: stamp duty

Handpicked stories from my weekly digest

Here are the 5 stories that you need to be aware of from this past week:

  • Luxury boom: In the July-September quarter, homes priced between ₹50 lakh and ₹1 crore were sold the most, accounting for 36% market share. But for the first time in India, the demand for luxury homes (priced above ₹1 crore) has surpassed that of affordable homes (priced below ₹50 lakh), with 35% and 29% market share respectively. Read more
  • Investing in stressed assets: Investors are showing interest in 170 stressed real estate projects in Bengaluru, estimated to be worth over ₹1,000 crore, due to a favourable investment environment and availability of funds for distressed assets. These projects, primarily in the mid and luxury segments, are distributed across various micro-markets in the city, with a major portion being apartments. Read more
  • Growth in tier-2 cities: By 2050, half the Indian population is expected to be in urban centres. This will propel real estate growth in not just tier-1 cities, but also in tier-2 cities like Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Nagpur, Surat, Thiruvananthapuram and Visakhapatnam. Read more
  • Waning impact of war: Amidst the Middle East's most intense turmoil in decades, oil prices just took a 4% leap, crossing the $88 per barrel mark. Unlike historical spikes, this one doesn't seem likely to hit the average consumer's pocket at the gas pump, with U.S. gasoline prices holding steady at $3.70 per gallon. Read more
  • Extreme solar storm: Scientists have discovered a significant spike in radiocarbon levels within the rings of a 14,300-year-old tree found in the French Alps. This spike in radiocarbon levels has been linked to the most powerful solar storm ever recorded. Read more

Opportunity amidst the grey wave


Image credits: Columbia Pacific Communities

India's senior population is growing rapidly. As of 1 July 2022, there were 149 million people aged 60 and above, making up about 10.5% of our total population. Fast forward to 2050, and this slice of the demographic pie is expected to double to 20.8%, with a headcount of 347 million seniors!

Dive down south, and the projections are even more eye-opening. By 2036, one in every five individuals in the southern states will be part of the elderly brigade. This booming grey wave is signalling real estate moguls to sit up and take notice.

Assisted living: There’s a growing demand for assisted living spaces, and tapping into this market now could spell golden opportunities for real estate players to offer comfortable, well-equipped homes for our seniors while securing a healthy return on investment. This sector blends brick-and-mortar projects with essential healthcare services, carving out a unique market niche that’s ripe with opportunity.

Help with activities of daily living (ADLs): Assisted living facilities offer enhanced care, including help with daily activities like dressing and grooming, medication management, and transportation. Besides housing and medical care, many senior living communities also offer social activities, wellness programs, and other services to help seniors maintain their physical and mental health, and stay engaged with their communities.

Market size: According to a report, the India Senior Living Market was valued at USD 10.15 billion in 2022 and is estimated to grow at a compound annual growth rate (CAGR) of 10% over the next six to eight years. At the moment, it makes up less than 1% of the real estate market in India. This shows that there is an immense scope for growth in the senior living market.

Demand in Tier-2 cities: Senior citizens are increasingly looking at non-metro cities to settle down. Cities like Coimbatore, Pune and Jaipur are some of the most opted retirement destinations.

Regulatory environment: Navigating the regulatory waters for assisted living spaces in India can be a bit of a tightrope. The real estate sector is governed by a mix of central and state laws. Real estate players looking to venture into this space need to comply with the existing real estate regulations, along with healthcare and elder care laws. It's about ensuring the safety and well-being of the senior residents while also keeping the operations legally sound.

Beyond the numbers and market potential, it's crucial to recognize the human aspect of the growing senior population. This demographic shift is not just about numbers; it's about the lives, experiences, and well-being of a significant portion of our society. As we witness this dramatic increase in the elderly population, we must emphasize the importance of providing them with not just housing and healthcare but also a sense of dignity, belonging, and quality of life. It's an opportunity for our society to show appreciation and respect for the wisdom and contributions of our seniors. Senior living communities can play a vital role in ensuring that our elders live their golden years with grace and comfort, surrounded by a supportive community that values their presence.


I want to gift my son a property. Will it attract stamp duty?
- Kamala

Hi Kamala,

Stamp duties are levied on gift deeds and they vary from state to state. Generally, they range from 2-7% based on property value.

Have a question? Reply to this email - if it's relevant to the broader Open House community, I'll feature it here!



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Disclaimer: This newsletter is intended for informational purposes only and should not be construed as professional advice. Please conduct your own due diligence prior to making any decisions.

By Ashwinder R. Singh
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