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| Edited By: Ashish K Tiwari |Source: DNA |Updated: Mar 17, 2018, 04:17 AM IST
All these examples show that the idea of having retirement homes, which is a popular concept in developed countries, is catching up with corporate India, particularly real estate companies.
Such a move makes economic sense, considering the rising number of the aged who are financially sound.
A recent report by Jones Lang LaSalle Meghraj (JLLM) said there are over 81 million elderly people in India. “It is expected that by 2025 this figure will be 177 million and by 2050, about 240 million, or more than one in five persons, will be senior citizens,” the report said.
Saumyajit Roy, associate vice-president (senior living), JLLM, said senior citizens are no longer considered withdrawn, risk averse and financially dependent. “The immense potential of this segment, with its unique needs and promises, offers an array of opportunities to the Indian real estate market,” he said.
John Britto, director, Acron Group, said there’s a big market for companies catering to the retired provided they have a right mix of housing products and specialised support and lifestyle services.
“While there are old age homes run by charitable institutions / NGOs catering to the particular strata of the society, the concept of a lifestyle senior living community is still in its infancy in India. There is a significant percentage of the existing and would be senior citizens who are accustomed to a certain way of living and would want to maintain that quality lifestyle minus the routine hassles,” said Britto.
The company plans to invest Rs 150-200 crore to set up retirement complexes in 10 locations, including Kerala, Coorg and Pondicherry.
Pranay Vakil, chairman, Knight Frank India, said parents living separately is no longer being considered a stigma. “Companies are targeting people who believe in lifestyle living. These are elderly citizens whose sons and daughters are well-settled in their personal and professional lives and are living separately (within India or overseas). These are people who are financially well-off and would want a more comfortable life with the same age group,” he said.
Most of these retirement complexes offer the best of healthcare, security and wellness features, with a focus on the elderly. For instance, there are grab rails in bathrooms, hallways and stairs, seats near lifts, anti-skid tiles in bathrooms and kitchens, and emergency alarm buttons within the dwelling unit.
But these facilities do not come cheap. For instance, Utsav’s Lavasa project costs between Rs 27 lakh for a 915 sq ft (chargeable area) 1BHK to Rs 82 lakh for a 2,430 sq ft (chargeable area) for 3BHK duplex villa. Maintenance and parking is over and above the cost of the apartment.
Companies also offer lifetime lease option. The new entrant Acron is pursuing the long-term lease model. Its apartments can be leased for 20 years with a minimum lock-in of 12 months. The one-time deposit for a 1BHK apartment is Rs 20 lakh (fully refundable with an option of capital appreciation). There is also a monthly rental charge of Rs 8,000 towards maintenance and upkeep of the residential community.
However, industry experts caution that there is a need to innovate in the set-up of such retirement complexes, particularly in post-handover care systems and facility management. “Although the real estate/ design/ financing aspects are crucial for the success of such projects, finer aspects such as access to quality and continuous healthcare, end to end convenience and support systems, activity planning and entertainment, and financial flexibility will differentiate successful companies,” said Roy.
