Senior Living: An Overview
A report by the Confederation of Indian Industry projects that India’s senior population will treble to 300 million by 2050. This highlights the need for more infrastructure and services to support this significant section of society. The report points to the current gap between supply and demand for urban senior housing: there are approximately 20,000 units currently operational, under construction, or in the planning phase, while the urban demand is for 240,000 houses.
The senior living sector in India is still at a very nascent stage. Not many developers have tried to explore this opportunity to its full potential. This sector has immense potential if approached strategically. There is also a certain degree of social stigma associated with the term ‘old age homes’ in India. This partly because it is considered an indication of destitution and conjures up images of being abandoned by one’s family.
But the idea of moving to retirement villages or senior-living accommodation is gradually emerging in urban India. The new generation of age 60 plus Indians are independent, financially stable and have travelled the world. Their retirement goals are independence and active living. They are exploring real estate options that bring together hospitality, health, wellness, recreation as well as the option of relying on assisted living if they need it later. With this fast growing demograph, real estate will have to consider more options to create an age-targeted community who could continue to live independently, with all their needs served.
Geographically, senior living projects were earlier largely concentrated in the southern states of India including Kerala, Tamil Nadu and Andhra Pradesh. The concept thereafter spread to other states and cities as well, with both few big and small builders entering this segment. This was mostly because the young working population in these states was migrating abroad, leaving behind ageing parents who needed support. The concept has now moved from traditional retirement hubs such as Coimbatore, Puducherry, Goa, and Dehradun to suburban areas around major cities such as Delhi, Bengaluru, Chennai, and Pune, which allow for more space and less cramped environs for large retirement projects.
Key Factors while considering Senior Living Accommodation
Location
Most senior living apartments are built in remote places in the outskirts of a city. The idea is to provide a noise and pollution free environment to the senior citizen. However it is important that the place is well connected via road transport and the facility provides quick transportation in case of emergency.
Weather
If moving to another city is an option, consider a place where the weather is mild throughout the year.
Healthcare
A facility should provide reliable medical care including hospital access, pharmacy and emergency medical services. There should always be a reputed hospital that is easily accessible.
Facilities
All senior accommodation should be easily accessible via ramps, elevators, etc. The place should provide for proper laundry and nourishment services. Provision of common basic services like 24X7 water and electricity supply, maintenance of proper hygiene, indoor and outdoor recreation facilities, security and housekeeping, single window facilities and helpdesk, transportation assistance, yoga and fitness facilities, care giving facilities etc. Provision of basic medical, safety and security services like 24×7 on-site ambulance service, mandatory tie up with emergency facilities with the nearest hospitals and pharmacy, medical emergency room, regular medical check-up of residents, emergency alarm systems, trained and skilled security personnel, CCTV cameras in common areas, prior police verification of all the personnel deployed in the Retirement Homes. Retirement homes need to be friendly for differently abled. Provision of lifts, signage & signalling systems are mandatory.
Reputation of builder
Check the reputation of the builder. The land policy under which the land for the property is acquired. If the facility has the Directorate of Town and Country Planning (DTCP) approvals. If the facility follows the cooperative housing society norms. Check the RERA registration certificate of the property. Retirement Home apartments can only be sold after registration under the respective Real Estate Regulatory Authorities of the States/Union Territories.
Always read the fine print in all the documents pertaining to the retirement home. A number of projects offer a variety of facilities, but they are expensive and increases your overall cost of service per month. Instead of focusing on the luxury aspects and premium fittings, you need to make sure that the project provides all the essential amenities within the campus. The cost of the services will rise every year. Since you will be living off your savings, don’t overextend and buy into a project you can’t afford.
It’s equally important to conduct some background checks. Always go for a company that has been long developing senior citizens’ project and has some experience in the field. If long term maintenance services have been outsourced , examine the reputation of the service provider. In particular, find out about the service provider’s level of specialisation in geriatric care.
Constraints of the Industry
Real Estate Slow Down
There are several reasons why senior living is still not a force to reckon with in India. The first one has less to do with the segment and more with the overall slowdown in the real estate market in recent years. Developers have been curtailing the supply pipeline of most residential project types because of the significant funding issues holding the market hostage right now.
There is already a massive pileup of unsold inventory in the residential market, partly because of a mismatch in what the market wants and what it is getting.
Lack of Policy Incentives
In this scenario, the only segment receiving significant policy-level incentives is affordable housing. Even this segment is to a large extent languishing from lack of funding. In any case, because of the higher costs involved, senior living obviously does not qualify as affordable housing.
The second problem is at the level of policy. The government has not given senior living the benefit of recognition as a priority segment. This recognition could attract more players.
Not every builder’s game
At its base, senior living is not so much about development as it is about providing a specialised service. After the basic structure, the design calls for senior friendly customised features. So when it comes to providing the specific services which senior living calls for, there are a much smaller spread of eligible players.
Also, senior living is not a typical ‘build-sell-forget’ proposition. It calls for the dedicated involvement of healthcare partners and facility managers. These services need to be in place throughout its life-cycle. Without this, the entire model loses its inherent meaning and purpose.
Super-specialisation
A successful senior living project requires enormous research which goes far beyond plotting the usual demand graphs. Most builders prefer to build a housing project, hand over the completion certificates, absolve themselves of further responsibility after forming the mandatory housing society, and thereafter turn to new undertakings. Just like mass housing and also super-luxury, senior living projects call for very specific skill-sets, resources and knowledge.
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