The entry by a major developer and a healthcare operator into the Senior and Assisted Living sector has caught everyone’s attention, which has been one of the factors for renewed industry focus. Besides, the product offerings have also matured – earlier, these were being seen as housing solutions, and now they are more services- oriented.
Percentage-wise, the senior living sector has a long way to go before numbers can be discussed at a level significant within the purview of the real estate market. However, given the country’s demographic profile, demand is certainly expected to grow significantly over the next five to ten years. More real estate developers will explore this segment as part of their larger integrated township developments. Cities which have traditionally been retirement destinations will see the launch of significantly more projects than in other parts of the country.
Originally concentrated more in Tier 2 and Tier III cities, senior living is now catching in Tier I cities, as well. However, a lot will depend on the acceptance of the key projects which have already been launched in the market, as and when they get delivered. Traditional retirement locations, regardless of whether they are Tier II or Tier III, are expected to see further growth.
How Senior Living Differs From Assisted Living Projects
Senior living – or technically Independent Living (IL) as the name suggests – is typically a concept pertaining to the age bracket 50+ years, wherein active adults are able to take care of themselves, and generally do not have serious health issues.
Assisted Living (AL), on the other hand, pertains to adults aged 65 and above. Typically, AL caters to individuals who need assistance with daily activities, but do not require nursing home care. IL would see greater market movement and supply. The market is yet to mature for services offered in the AL, Skilled Nursing (SN) and Continuing Care Retirement Communities (CCRC) segments.
To cater to the needs to the senior citizen is definitely very important. The sheer numbers of people who are used to a certain standard of nuclear living and are interested in maintaining the same standards are significant.
Senior Living – India Vs. Developed Countries
Indian companies need to learn a lot from the developed markets in terms of service delivery. On the other hand, given that Indians have an affinity towards real estate, the delivery models have to be carefully designed to attract maximum end users to the project. This makes the segment unique to the Indian context in certain ways.
Typical residential units (both apartment and villas) that are being offered in senior living projects range from 1 BHK to 3 BHK, with the only real difference between these units and normal developed homes being the design/architecture aspects.
When it comes to costs, however, there are significant differences. Apart from the real estate costs, there is a recurring monthly cost for the services offered. Pricing may vary depending on the location, size and project positioning. For example, we at least one project which is at the ultra-luxury level, while other projects are at the mid-luxury level.
Also, senior living projects do not need to be in central locations. By definition, there are certain requirements for a senior living site; for instance, it should be located near a healthcare facility, cater to the social needs of the resident seniors and should offer adequate security.
These projects have been offered on various delivery models, but the primary ones are Sale Model, Lease Model and Deposit Model. Besides these real estate agreements, there is usually a separate agreement for the specialized services.
The typical buyers are generally seniors aged over 55 year who are well travelled, are accustomed to a certain degree of quality services (such as retired corporate, armed forces and civil service personnel) and, sometimes, have their dependents living abroad. NRIs who wish to return or individuals with a business background who wish to buy a second home are also considering such projects.