According to a report by real estate consultant Jones Lang LaSalle, India had around 100 million senior citizens (aged 60 and above) in 2012. This number is expected to double by 2030 and is expected to constitute 20 per cent of India’s population by 2050. As this number increases, couples and individuals who want to be independent without compromising on safety and comfort are seeking alternative residential solutions for their retirement years.
Kanchana Krishna, Director-Chennai, Knight Frank, says, “The concept of senior living is at a nascent stage in the country. But the trend is catching up and Tamil Nadu is seeing the most number of organised senior living projects coming up in south India, constituting 52 per cent of the market supply. We estimate a year-on-year demand of 20,000 residential units, with Coimbatore expected to rule the roost followed by Chennai, Puducherry, Madurai and the hill stations. In Chennai, the southern corridors along OMR, GST and ECR are preferred for such projects.”
Ashiana Housing has launched Shubham, a 20-acre senior living project in Maraimalai Nagar (off GST road). Vishal Gupta, MD, Ashiana Housing, says, “We operate an outright purchase model meant for residents aged above 55. The needs of a senior are different from those of a regular customer so we need to pay special attention on wide-open green spaces and good infrastructure without much pollution. Also, unlike a regular project, we continue to maintain projects even after handover. Our maintenance package takes care of a four-meals-per-day mess, an activities manager to keep residents engaged, round-the-clock medical assistance and transport facilities apart from taking care of the home.” Apartments at Ashiana Subham are priced from Rs. 25 lakh to Rs. 45 lakh.
P. Viswanath of Serene Senior Living is a senior citizen himself and operates several senior living home projects across South India. He says, “When one talks about post-retirement living, we only think about men. What about housewives who work all their lives? We need to take care of them too. As one gets older, even seemingly simple things like calling a plumber or fixing electrical problems prove tiresome. We want to rid them of any such hassles.”
Maintenance charges at a Serene project come to Rs. 7 per sq. ft. per month. With the use of all facilities, the charges range from Rs.15,000 to Rs.18,000 per couple per month.
General Kulbir Singh Dhaiya, 74, has been living in a retirement home for some years now. He says, “I lived in Gurgaon for 15 years before I shifted here. My friends wondered if it would be difficult to be away from friends and family. In a city, you hardly meet new people, but in a community like this one, one can make friends with everyone.”
Viswanath of Serene feels such projects are significant with migration levels going up. “The concept of a joint family is fast dying. With high migration levels, family sizes are getting smaller. In my own case, my mother passed away when my father was 63. He was a successful professional but he possessed very few of the life skills one needs to run a home. In the earlier generations, the kids would be taking care of the elders. But with kids moving away to foreign countries, why would we want to uproot elders?”
Retirement homes vs. old age homes
Developers feel the social stigma associated with old age homes has deterred more people from opting for senior living projects. “Even the educated, upper-middle-class mistake retirement homes to be old age homes. They feel as though they are being abandoned,” says Viswanath. “People think these are charitable organisations, often with a religious backing. We are running a business and provide a service, along with an asset, so that residents feel a sense of ownership.”
When should one invest in retirement homes?
Unlike regular housing, experts advise people to invest in retirement homes long before moving in. Krishnan says, “Retirement homes tend to be 10-15 per cent more expensive due to the built-in integrated facilities they offer. Planning must be far-sighted and the homes must be purchased 8-10 years before one’s retirement in order to make commercial sense.”
Investing in regular real estate vs. retirement housing
“The logic that one applies to purchasing a retirement home is very different from buying a regular home,” says Viswanath. “When one is younger, people look to scale up — often opting for more bedrooms and a high return on investment. But as one grows older, they prefer smaller homes that are easier to maintain even if they cost more. So most of the homes are around 800 sq. ft., and cost between Rs. 35 lakh and Rs. 45 lakh.”
