Oyo, a hospitality chain is planning to foray into assisted-living communities or retirement homes for senior citizens. Backed by Softbank, the hotel-booking startup may venture into this vertical through its real estate arm, which includes its co-living vertical Oyo Life.
“Assisted living for senior citizens could be a natural extension for our business,” said CEO of Oyo’s real estate arm, Rohit Kapoor.
According to the analysts, retirement homes could be a potentially lucrative space as India’s elderly population is set to touch 300 million by 2050. The market for elder care services is estimated to reach $1,900 billion worldwide by 2026, growing annually at 8.5 percent during the period, said Global research agency Persistence in a study.
Citing data from real estate services company Anarock, it is estimated that there are only 4,500 senior living units available in India, with more than 2,000 units under various stages of production. Covai-Care, Brigade Orchards’ Parkside Homes in Bengaluru and the Golden Estate in Faridabad are some of the active players in the market.
“They will need to create an industry similar to how they are standardizing co-living spaces. The market existed in an unorganized way and Oyo has been able to shape it up and brand it through Oyo Life,” said Anuj Puri, Chairman of Anarock Property Consultants.