Retirement Homes may start gaining grounds

There are over 81 million elderly people in India. It is expected that by 2025 this figure will be 177 million and by 2050 will be about 240 million or may be more than this. This is according to report submitted by Jones Lang Lasalle Meghraj. With the same reference Saumajit Roy, Associate vice president (Senior Living), JLLM , said that senior citizens are no longer considered withdrawn, risk averse and financially dependent.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.
If we study this statement with further micro-analysis; we will come across the financial strength of this segment. If we just consider an employee who is going to be retired even at clerk level to officer levelin a PSU Bank; his retirement benefits are in the range of 24lakhs to 35lakhs.
Because of sixth pay commission or different settlements with different managements this benefit is going to go high by another 15 % . So after 2015 the amount will be increased by another 15 %.
There are few business houses in India who ha s already in process of setting up the apartments for this segment.
Paranjpes have initiated the process by project “Athashree”. The phase one was launched at Pashan(Pune). That was a mega success. So Athashree two was launched at Bavdhan Pune . Both projects got tremendous appreciation from society.
Impact senior living estates(ISLE) WAS LAUNCHED AT Amritsar, Rajgarh(Himachal Pradesh) was launched by Harpal Singh(Fortis Health Care and Dipak Nirula(MD OF RESTAURANT CHAIN Nirula’s)
LIC HFL Care homes are operating retirement village in Banglore and plans to take it national.
Classic Kudumbam has founded by Chennai based realtor Baba Shankar.
Ashiana Housing (Delhi Based Company)operates a chain of retirement resorts Christened Utsav in Bhiwadi, Jaipur and now at LAVASA Pune.
Acron group, The Goa based diversified entity with their interests in realty, infrastructure, hospitality and retail are in process to launch retirement complex at Baga Beach(wow!!!) in next three months.
Neral (Extended sub urb of Mumbai) will be having a retirement township over 25 acres.
I think big corporate are working on this. According to John Britto, Director, Acron Group, “there is a big market for companies catering to the retired; provided they have a right mix of housing products and specialized support and lifestyle services.”
During last few decades nucleus families rooted very well and now parents and their children living separately is no longer a considered as stigma. In fact because of different lifestyles and routines both feel that it is better to give space to each other. This is a particular class of elderly citizens or would be elderly citizens, whose sons or daughters are well settled in their personal and professional lives and living separately(within India or abroad)
These people are looking for
Comfortable lifestyle
Pollution free atmosphere
Best of health care facilities
Security
Wellness features.. such as yoga, Ayurveda treatments, meditation centers….
Entertainment
If possible some work to keep them busy but not stressed.
And last but not the least ,”price”
This class also wants different add on specifications in their apartments
The routine business model of selling the apartment may not work effectively for the segment.
Lifetime lease option, reverse mortgage, long lease models, convertible deeds are some of the ideas.
One can even think of a famous say “CATCH THEM WHEN THEY ARE YOUNG” or can modify a little and say ,”catch them when they are in their forties” . Launching a mutual fund or collecting deposits like all other construction houses accepts from their investors, since somebody is in his forties is also another fund raising idea. Because getting housing finance may be a problem if somebody is applying for finance in the later stage of his life.
But considering 50 million pensioners buying property in the tune of ten to fifteen lakh segment sounds me like a huge business projection. And after sales service will be the key factor in this era which once again open huge opportunities for buyer and service provider.
Selection of location for these kind of housing is going to play a key role. A joint development for weekend resort at one corner and retirement homes at other corner may be a good way to handle it. So that the kind of other hospitality management services may be utilized with 100 % efficiency; and will make the project more lucrative and viable.
There are few other interesting concepts can be discussed in this segment and for this segment.