While housing projects for senior people, is a relatively new segment in the Indian property market. An investment can earn homeowners handsome returns. We analyse the costs & precautions that home seekers need to be conscious of while choosing a retirement home.
Sitalakshmi Gopalan, a retired school teacher(in Delhi), funded in a senior living project in Coimbatore. Although her children remain to stay in Delhi, she was evident that she wanted to stay with people her age & live a comfortable life. Similarly, Jitender Singh & his wife (residents of Pune), whose children worked overseas, sold their property & invested in a senior living project. Singh & Gopalan represent a tiny segment of buyers, who choose for retirement communities, in a country where the ‘joint family’ structure still endures.
Reckoning for less than 1% of the $25-billion senior housing enterprise worldwide. The concept of senior citizen housing, still carries a social shame in the country. According to a JLL study of 135 urban cities & towns in India, with an entire population of 223 million & a total of 52 million households, households with seniors stood at 12.8 million. Of these, the demand for formal senior living amenities is estimated to be around 3, 00,000 home units.
However, there is a huge gap between potential customers & customers who are aware of their terms, points out Ashwin Iyer, CEO, Vedaanta Senior Living LLP. “Being a fairly new industry, the concept also needs to go through a steep awareness curve. Typically, the price for high-income senior units is around 50-75 lakhs rupees & above, while it is 25-50 lakhs rupees for mid-income & 10-25 lakhs rupees for low-income,” adds Ashwin.
Although there is a nationwide demand for senior housing, south India seems to be the biggest market.
Tamil Nadu had the most significant percentage of senior customers. With high per capita income, makes it a very interesting state for projects on senior living.
Consumers in this division, prefer properties that have open spaces, fresh environment & are close to their friends & family. People like to retire in places, where they spent most of their time, or their children are settled. Therefore, projects on the outskirts of cities & towns, have seen good demand.
Cities like Bengaluru, Chennai, Coimbatore, Pune, Hyderabad, Puducherry, Bhiwadi and Kanchipuram, have become famous locations for senior living.
The facilities of a senior living complex, are distinct from other target age groups. The projects should be self-sustaining, so that the residents don’t have to try out to look for basic services. “Home seekers should examine the cost of the home unit, monthly maintenance charges, presence of healthcare amenities & other facilities for senior citizens at the community site. This includes quality food, clean water and space for exercise and leisure.
The project should also have simple access to transport amenities, railway stations & the airport(if possible). The retirement community should, ideally, be established in a peaceful location, with good ventilation & sunshine and also be connected to the city’s prime areas.
So, would the extension of senior-friendly facilities, add to the total cost of the project?
Yes, the value will be 10%-15% higher than a regular project. Gupta explains that the planning of amenities and designing a senior living complex. It can add almost Rs 100 per sqft to the construction cost. There are two sorts of investors, in the retirement home segment. The first kind invests with a view to sell the dwelling at an appropriate time and make a profit. The second are genuine retirees. Retirees who want to live in a community project. Project designed for people of their age.