70% of senior living projects in India are located in southern cities

New Delhi :  ‘Senior Living Housing’ is poised to become an important residential asset class as demand for retirement homes is likely to grow exponentially over the next three decades with India’s fast ageing population, according to Housing.com research.

Already, senior living housing, currently at a very nascent stage, has come into focus after the outbreak of the COVID-19 pandemic, which highlighted the vulnerability of the elderly.

Sensing an immense opportunity, many real estate developers have started to cater to this demand, either through development of standalone senior living projects or building dedicated towers with necessary amenities for senior citizens within a regular group housing project.

“India’s 1.3 billion population is aging faster than before. The population of senior residents (above 60 years) is projected to register a 130 percent growth between 2020-2050 and is set to reach a whopping 320 million from the current 139 million,” said Mr. Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com.

Housing.com, Makaan.com and PropTiger.com, three leading real estate portals in the country, are owned by REA India, which is part of Australia’s REA group.

Mr. Agarwala is of the view that the sheer size of the population in this age group presents a huge investment potential in this niche space.

“There is a genuine case for development of senior living as a separate asset class in India’s real estate sector similar to co-working and co-living that have emerged as important asset classes in the last few years,” Mr. Agarwala added.

CURRENT STATUS:

Housing.com’s research report ‘The Silver Economy – A perspective on senior living in India’ shows that senior living housing or retirement homes as a concept has taken root in the past two decades but there is a long way to go before it emerges as a new asset class in real estate.

As per our research findings, southern cities of India have emerged at the forefront taking 70 percent share of the overall senior living projects in India.

Geographically, most senior living projects in India are concentrated in the southern cities, with Bengaluru, Chennai, Kochi, and Coimbatore leading the tally, followed by the west and north.

Several factors such as salubrious climate, better connectivity and presence of prominent healthcare providers have contributed to the emergence of southern cities as hubs for senior living.

Ashiana Housing, Columbia Pacific Communities and Max group’s Antara are major developers in this segment.

Commenting on the report, Mr. Mohit Nirula, CEO of Columbia Pacific Communities, the country’s largest, most preferred and only international player creating and serving senior living communities in India, said that 2022 will be the breakout year for this nascent yet very necessary industry. 

“The solution offered by well-designed and managed senior living communities serves the needs of its residents on the day they move in and is geared to adapt and evolve as these needs change over time,” he said.

Mr. Ankur Gupta, JMD, Ashiana Housing Ltd, opined that with senior living communities continuing to grow in metros and smaller cities in the country, it is expected that in the coming years a variety of aspects in terms of services and amenities will evolve.

“However, developers need to focus on making these projects more viable from the point of view of consumers. In times to come, the development firms will need to add superior quality projects to their portfolios and infuse premium community living experiences,” he said.

Mr. Rajit Mehta, MD & CEO, Antara Senior Care, and MD, Max India, emphasised that senior living facilities are well equipped to ensure the holistic well-being of older people.

“We need more structured care programs, targeted policies, specialized medical services, senior-friendly architecture, and socio-economic/financial interventions to ensure a better quality of life for them,” he said.

DIFFERENT MODELS:

Real estate developers are offering senior living housing projects on outright sale or lease basis.

There are different models of senior living housing, broadly divided into independent living; assisted living; skilled or nursing care; and continuing care retirement community.

Builders offer amenities such as household services, recreational facilities, and community spaces.

Such projects also have medical facilities such as ambulance, regular medical check-ups, tie-up with hospitals, and round-the-clock medical staff in some cases.

KEY DEMAND DRIVERS:

Increasing elderly population; rise in nuclear families (52 percent households were nuclear families as per Census 2011); financially independent, upwardly mobile and educated senior citizens; Increasing medical needs of the elderly; NRIs coming back to India after retirement.

Housing.com’s report reveals that a significant number of senior citizens have started looking for retirement homes in the range of Rs. 1-2 crores.

The preferred configuration continues to be 2BHK apartments in the less than Rs. 45 lakh price bracket.

“Although still in a nascent stage, given the focused policy efforts, positive demographic drivers, rising involvement of private players and reshaping of consumer preferences in the cohort amidst the pandemic, we believe that the senior living sector is poised to catch up as an essential and viable segment in the residential real estate sector in the coming years,” the report concludes.