To tap the increasing demand, more and developers are building homes exclusively for senior citizen, according to a report by real estate advisory firm Jones lang lasalle.
“The status of seniors in Indian market is experiencing a sea-change, owing to their growing cohort size, augmented financial independence and change in mindset. They are no longer considered withdrawn, risk averse and financially dependent.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,” the report said.
“There are currently about 30 senior living projects in India,” said B Sridhar, national director, social infrastructure practice, (education, healthcare and senior living), Jones lang laSalle India (Jll). Another 30 are in the pipeline, “most of them are at the proposal stage”, he said. Bangalore, Pune, Chennai and Coimbatore are the most active cities in this segment.
“The gradual shift visible in Indian society, with the emergence of financially independent and lifestyle-oriented seniors has triggered the growth of high end to luxury senior living products in range of Rs 60 lakh to Rs 1 crore and upwards,” said Sridhar. According to experts, independent retirement homes are on the rise, but it will take years before they form a substantial part of the market. Currently, they have a market share of only 2-3 per cent in the overall realty market. With increasing focus of developers, the segment is bound to grow manifold in next five years.
Tata Housing Development a subsidiary of Tata Sons ltd, is also planning to invest Rs 1,200 crore to build 12 senior living projects in eight cities over the next five years. “We will be investing around Rs 1200 crore for developing 12 projects across 8 cities for senior citizens in the next five years. We have already launched our first pilot project, Riva Residences, in Bangalore and work for similar projects would soon commence in more cities, including Chennai, Ahmedabad, Mumbai, Kolkata, Delhi and Pune,”Brotin Banerjee, MD & CEO, Tata Housing Development told The Pioneer
The launch of Riva Residences in Bangalore has helped this company in understanding the living concepts of senior citizens. Its infrastructure will include modern utility-based design facilities, services and ambience. He said “lifestyle solutions for seniors are at a nascent stage in India. Our in-house research suggested that a significant section of seniors today are independent, financially stable, well-travelled and socially-connected, and as a result have well-developed thoughts of their life after retirement.
“Residences for senior citizens, as a concept, are fast gaining recognition, especially with the breakdown of traditional joint families and more and more youth migrating in search of jobs or education. This sociological shift towards a financially independent and lifestyle-oriented set up has opened doors to a new segment of residences, he added.
In an attempt to keep the elderly in the same set up, NCR-based realtor Silvergrades in association with Age Ventures, a non-profit organization, has decided to launch a project where a tower in the complex will be meant for the elderly. The company plans to invest about Rs 350 crore in the project. We are also looking at similar projects in Kasauli and Dehradun, where it has land, said Silvergrades Director Anubhav Jain. last year Max India announced entry into the senior living business with an investment of Rs 240 crore through group firm Antara Senior living Pvt ltd, it promoted the project as ‘fun and laughter, 60 and after’.
Developers such as Ashiana offer such projects in the north and the west including in Bhiwadi, Jaipur and lavasa with plans of opening 3 more this year, one in Kolkata and the other two down Southand. The Golden Estate has its project in Faridabad with plans to enter Hyderabad and Bangalore later this year. Globally, the industry for senior housing is pegged at around $25 billion, says Jll. The report pointed out that the current demand for senior housing in India was about 3 lakh units. “By 2025, it is estimated that there will be 173 million seniors above the age of 60 compared to the 76 million today,” report pointed out.
People aged 60 and above may increase from 8 percent in 2010 to 19 per cent in 2050, according to United Nations Population Division. India is likely to have as many as 323 million ‘seniors’ by the middle of the century.