Rustomjee Group Weighs Senior Living Entry, Sees Scope for 5,000+ Homes in MMR

What happened

The Rustomjee Group, which operates through Keystone Realtors Limited (NSE: RUSTOMJEE), is evaluating a move into the senior living segment. Boman Irani, chairman and managing director, said the Mumbai Metropolitan Region offers potential for more than 5,000 senior living homes. The remarks were made on the sidelines of CREDAI NATCON 2026 in Kolkata, according to the report that carried them.

Irani said senior living inside established urban areas could appeal to buyers who want to live independently while staying close to family, friends and existing social networks. He also said many prospective residents may prefer to stay in Mumbai rather than move to retirement destinations outside the city.

The company aims for senior living to make up about 50% of its total bookings over the next five years. That is a target, not a launch plan. The report does not give a date, location, number of units or price for any senior living project.

Development model under consideration

The group is considering building senior living projects on its own or partnering with a specialist operator. The report says the investment plans, project pipeline and operating structure have not been finalised.

In an earlier interview reported by Homes India Magazine (undated in the material reviewed), Irani said the business was talking with several stakeholders about starting a senior housing project. He said he was meeting potential partners and exploring opportunities, with plans to close one in the coming months. The same report lists policy asks from the sector: developer tax incentives, property tax rebates for senior citizens, and rental housing schemes linked to the Pradhan Mantri Awas Yojana (PMAY).

Parent company context

Keystone Realtors filed a Regulation 30 operational update on 8 October 2026. It reported record quarterly pre-sales of ₹1,423 crore in Q2 FY27, up 84% from ₹772 crore in Q2 FY26. The total area sold in the quarter was 0.65 million square feet, up 31% from 0.50 million square feet a year earlier.

Collections were ₹541 crore, down 19% year on year and down 10% quarter on quarter. First-half FY27 pre-sales were ₹2,041 crore, up 11% from ₹1,839 crore in H1 FY26. Q1 FY27 had been weak, with pre-sales down 42% year on year to ₹617 crore. The company attributed the Q2 recovery partly to a surge in project launches, including Rustomjee Ozone Skye in Malad West and the 25HQ commercial project in Prabhadevi, together about 0.54 million sq ft of saleable area and roughly ₹2,196 crore of gross development value.

For FY26, pre-sales rose 33% to ₹4,022 crore and profit after tax was ₹95 crore. The company reports a gross debt to equity ratio of 0.26:1 as of Q4 FY26 and a AA- rating from Crisil. Management has set a FY27 pre-sales guidance of ₹5,000 crore and has said it expects to reach a ₹10,000 crore pre-sales level by FY30.

The sector numbers

Figures cited in the report and in the wider coverage relate to the whole organised senior living sector, not to Rustomjee:

• India had about 25,050 organised senior living units as of June 2026, a penetration rate of about 1.5%.
• Organised inventory grew at a compound annual rate of 14.2% between 2024 and the first half of 2026, against 8.5% in 2019–2023.
• An ASLI-JLL report projects organised supply of around 74,000 units by 2030.
• Colliers estimates inventory could reach nearly one lakh units by 2030, against potential demand of about 30 lakh units. It expects the market to grow from about ₹30,000 crore to beyond ₹1 lakh crore by 2030, and attributes investment of more than ₹13,000 crore over the next three to four years to developers and investors.
• India has about 2,100 organised assisted-living beds, while an estimated 8.8 million people live with dementia.
• A Jeevin Consulting study estimates that urban Indians may need a retirement corpus of ₹2.5–6 crore to support a comfortable lifestyle for 25–30 years, depending on location, healthcare needs and housing choice.

Ashiana Housing, a listed senior living developer, is targeting senior living bookings of about ₹750 crore in the current financial year. It reported about ₹530 crore from the segment, slightly over 20% of its total bookings, in the previous year.

What it changes for buyers, investors and the market

Buyers. Nothing changes for buyers yet. No senior living project from Rustomjee has been announced, so there are no units, prices or possession dates to compare. Irani's stated view is that older buyers may want homes in established urban areas near family. That is his view on demand, not a finding of any study.

Investors. The company's entry would add a new segment to a large, mostly unbuilt market. Supply estimates vary between about 74,000 and nearly 1 lakh organised units by 2030. The report does not say how much capital Rustomjee would commit.

Market. No named analyst has commented on Rustomjee's specific plan in the material reviewed. Brokerage commentary on Keystone notes that its heavy concentration in the MMR leaves it exposed to any regional downturn. Irani said in a separate remark that some pockets in the region may have cooled, while overall demand remains strong in about six to seven key areas.

What happens next

No dated next step has been announced for the senior living plan. The company has not named a site, partner, launch date or pricing. Irani's earlier comment about closing a partnership “in the coming months” has not been followed by a public announcement in the material reviewed.

Keystone's other announced plans include a plotted development project in Kasara, which Irani said the company aims to launch in the next fiscal year. The company also has a super luxury project at Bandstand, Bandra, which Irani said in December 2025 was targeted for launch and had a gross development value of about ₹3,000 crore. Management has also said it expects project launches of about ₹8,000 crore this year. Those plans are separate from the senior living evaluation.