Edelweiss MF’s CEO Radhika Gupta recently shared on X (formerly Twitter) that one of the most significant challenges faced by senior citizens who own property assets is their difficulty in converting these assets into liquid cash.
In her post, Gupta highlighted the importance of seniors focusing on maintaining liquidity as they age, stressing that the risk of illiquidity is a significantly greater concern than equity risk. She points out that while discussions often centre around minimising debt and equity risks for older individuals, the real issue is the challenge of managing their assets' liquidity.
This struggle arises because while property can be a valuable asset, it is only easily converted into cash after undergoing a lengthy and complex process. Senior citizens often find themselves in a position where they need to access funds quickly for various needs, such as medical expenses or daily living costs, but need help liquidating their property assets efficiently.
“Three cases known to me where senior citizens have property assets, need liquidity and are not able to get it because in different cases: Tenant won’t vacate the house, Property market is not conducive to a sale at this time, and Transaction will be all or largely cash. We talk of more debt and less equity risk for senior citizens. But illiquidity risk is far more problematic. As you get older, get more liquid,” Gupta wrote in her post on X.
India's senior living market is projected to experience significant growth, expanding from its current valuation of $2-3 billion to approximately $12 billion by 2030. The country's ageing population primarily drives this increase. According to Colliers, the median age in India is expected to climb from 29 to 38 by 2050. During the same period, the proportion of individuals aged 60 and above is anticipated to rise from 11 per cent to 21 per cent.
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