COVID-19 may push up demand for senior living homes in India. While the South Indian market dominates in this category, there are only 55 projects across the country of which 60 percent are located in tier 2 cities and the remaining 40 percent in Tier 1 cities, Anarock has said in a report.
Senior living projects have sprung up mainly in the outskirts of the major cities and in tier II and III cities across the country. Bhiwadi in NCR, Neral in Mumbai, Talegaon in Pune and Devanahalli in Bengaluru are some of the prominent locations around Tier 1 cities, while tier 2 and 3 cities have more supply - a 60 percent share in approximately 33 projects. Tier 1 cities have just 22 projects dedicated to seniors, it said.
Prominent tier 2 cities include Coimbatore, Puducherry, Kodaikanal, Vadodara, Bhopal, Jaipur, Mysuru, Dehradun, Kasauli and Kanchipuram, among others. Key Tier 1 cities are Bengaluru, Chennai, Pune, Noida.
Region-wise, the southern cities have a nearly 69 percent share of these projects, coinciding with the demographic assumption that elderly population growth in the southern states will grow at a faster pace than the rest of India, according to a report by SBI.
The United Nations Population Fund & Help Age India estimate that India’s aged population will touch 173 million by 2026. COVID-19 is likely to accelerate demand for senior living - the pandemic has highlighted the elderly’s need for safety, care, well-being and companionship. As such, this asset class is a significant opportunity for developers and investors.
“Due to the rise of nuclear families, increased life expectancy and people living across geographies, 'independent seniors' are becoming new demography. Such seniors do not settle for traditional old-age homes as they prefer - and can afford - autonomy and the company of age peers in well-equipped retirement communities.
"A recurring theme of this pandemic has been seniors living alone, struggling for basics, managing without house help and anxious about existing and potential medical issues. The need for homes in a setting where these factors are taken care of is now undeniable,” said Anuj Puri, Chairman – ANAROCK Property Consultants.
Responding to the rebooted opportunity, Max India Ltd’s Antara Senior Living recently announced a Rs 300 crore investment over the next 4-5 years, in senior living projects to come up in Delhi-NCR, Mumbai, Pune, Hyderabad, Bengaluru and Chennai.
Among current projects, some are entirely for seniors (>55 years of age) while in others, only certain blocks/towers have dedicated senior-specific facilities. The latter option allows seniors to live in the same integrated township as their families, but among their age peers.
"We have seen different trends in case of Dehradun and Noida. The average age of a buyer in Dehradun is between 60 and 65 years and in Noida is about 45 to 50 years. We have also observed a trend where people are buying for their parents and would like to move in with them," Rajit Mehta, MD and CEO at Antara Senior Living told Moneycontrol.
The urban setting of Noida gives them an opportunity to continue their professional lives, while they plan for their retirement. For Dehradun, due to the location, most of the residents are retired. The top players operate on either of two models – outright sale or rentals (with a security deposit and monthly charges). Average monthly rentals in senior living residences across cities start as low as Rs 30,000 and go up to Rs 1 lakh, depending on facilities, type of occupancy, he said.
For outright sale, property prices vary depending on the city, facilities on offer, BHK-configuration, size etc. The maximum supply across cities is in the range of Rs 20-80 lakh, again depending on various factors. There are also some limited exclusive high-end senior living projects wherein units are priced between Rs 2 to Rs 8 crore, an Anarock estimate said.
To safeguard the rights of seniors, the Ministry of Social Justice and Empowerment in India has defined models for operating and monitoring retirement homes. While the framework is based on regulations and guidelines for residential real estate, of which senior living is a part, the norms acknowledge that senior living developments differ from conventional housing and have special requirements.
The planning norms include permissible sizes of units in such projects, permitted FAR and inclusion of such developments within the residential zones of the city’s masterplan.
For instance, the average size of 1 BHK dwellings must be at least 40-60 sq. mt. while for 2 BHK at 50-80 sq. mt. in plains. In hilly terrains, a 1 BHK must be 30-35 sq. mt. and 2 BHKs at 40-60 sq. mt. The physical standards must conform to the National Building Code Model and its bye-laws.
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