Is Senior Housing Right For You?

Many seniors have taken refuge in senior living facilities in their twilight years as their children have moved abroad. While that may help them ward off boredom, they often come at a huge cost

India’s senior housing market has seen a significant spike in demand in recent years. Experts predict that the need for specialised housing and medical services for seniors will continue to rise as their population increases with longevity increasing in India.

In a position paper titled Senior Care Reforms in India in February 2024, Niti Aayog estimated that people aged 60 and above will account for 20 per cent of India’s population by 2050, in line with an ageing trend observed globally, including in China, France, Germany, Japan, the UK, and the US. This trend is further expected to drive the need for elderly care.

Ravi Reddy, president of National Real Estate Development Council (Naredco) NextGen, an autonomous self-regulatory body established in 1998 under the aegis of the Ministry of Housing and Urban Affairs, says, “The market is projected to expand to 2.5 million units over the next decade, up from around 1 million in 2024. This indicates a considerable opportunity for developers as the penetration rate is just 1 per cent compared to countries like the UK and the US. Also, about 60 per cent of the current demand comes from Tier-II cities, where availability of senior housing is limited.”

CBRE South Asia, an arm of the leading international commercial real estate services and investment firm CBRE Global, highlights that demographic shift, changing family structures, and the increasing need for tailored retirement solutions have accelerated the demand for senior care facilities in India.

Says Parimala Rao, 84, artist, poet and author of around 40 books, who lives with her husband Raghunath, 90, at Manasum Avighna Senior Living facility in Bengaluru: “We have our own house, but as we are ageing, managing ourselves has become difficult. So, we thought of living in a retirement home. We delayed the decision for 10 years because he (husband) was not so interested initially, as the house was in a good locality where everything was at arm’s length. But after a while, we found it difficult managing the cook, house help and all that.”

Before returning to Bengaluru after retirement, the couple lived in the IIT-Madras campus for 30 years, where she taught at the Vanavani Girls High School for 22 years, and Raghunath worked as a deputy registrar at the IIT’s administrative section. Their son and daughter are settled in the UK and the US, respectively.

Let’s explore what’s on offer and the challenges you may face while opting for a senior living facility.

Who Needs Them?

Senior living facilities, typically, offer more convenience than independent living, given the fact that many seniors live alone due to family dynamics or because their children have settled abroad.

In fact, most buyers come from families whose children work overseas or have settled abroad. However, some buyers may have other situations. Says Anantharam Varayur, co-founder of Manasum Avighna Senior Living: “We look at a class whose children have gone abroad or couples with only daughters. Many parents will not go to their married daughter’s house (to stay permanently). There are also couples without children.”

N.S. Ganesh, 71, also has a similar story to tell like others with non-resident Indian (NRI) children. He has been living with his wife, Uma, 66, in a 2BHK apartment at Ashiana Shubham, near Chennai, since June 2018. Their elder son lives in London and the second son is in Australia.

Says Ganesh, “I was living in Chennai where I worked at a large IT company as an associate vice president and head of banking for 16 years. Since I didn’t want to take up any consulting work or other activity after retirement in 2012, I thought of living in a retirement community. I wanted to go to Coimbatore because I grew up there, but we did not come across a suitable place. Then I saw Ashiana, and liked the ambience.”

The Attraction

A few real estate developers provide tailored services for individual needs at senior living facilities, from specialised medical attention and assistance with daily activities to emotional and social support.

Says Varayur, “If they purchase or rent an independent house, they will have to hire a cleaner, a cook, a driver and even a security guard or a caretaker. Suppose the house help doesn’t show up; what if the Internet or TV stops working? Who will handle the hassle of clearing electricity and water bills? It’s a tough job for seniors, especially when there are many other things to manage.”

Food is also, usually, taken care of by the service provider. Varayur adds: “Breakfast, lunch, evening snacks, and dinner are served in a common dining hall. Serving food in a shared kitchen also helps avoid fire accidents. We don’t allow gas in any of the houses because someone, who might be quite old, may forget to switch it off. Second, once you cook independently, you must buy ration and vegetables and cut and clean them.”

N.S. Ganesh (71) and Wife Uma (66) with grandchildren, Chennai

The elderly couple decided to move to a retirement home in Ashiana Shubham near Chennai in 2018, as both their sons are settled abroad—in the UK and Australia, respectively

Taking care of all the basic chores also leaves time for them to pursue other activities, such as yoga, recreation, and ‘Satsang’ prayers.

Parimala and Raghunath spent one-and-a-half months at Avighna on a trial basis before shifting. “We took it on a three-year lease for Rs 23 lakh after consulting with our children; we are enjoying here now. Once a month, the doctor visits us. The retirement home is attached to the Bridge Hospital. We also get medicines and can do blood and sugar tests, check blood pressure and temperature, etc. It is better than living in our house where we felt lonely and bored.”

Some senior living projects provide a free shuttle service on specific weekdays for the residents’ personal official work, such as banking, medical needs, visiting a temple, and so on. They typically have free 24x7 health check-up facilities, with permanent nursing stations, and a round-the-clock ambulance service to ferry residents to a multi-speciality hospital in an emergency.

For instance, at Avighna, launched in 2020, residents are regularly checked for body temperature, sugar, BP levels, among other basic tests. Varayur says that post-Covid, they have also started checking oxygen levels, and health reports are sent to their children via emails.

The Challenges

High Cost: The unit cost depends on the projects and the size of the house or apartment. At Manasum’s Banyan Senior Living in Bengaluru, one-bedroom units cost around Rs 57-58 lakh, while two-bedroom units cost around Rs 65-66 lakh. Varayur says, “Our price is higher by about Rs 4-5 lakh compared to the rest of the towers because of the facilities. For example, all the floors, even the bathrooms, have grab rods, a panic alarm system, and a separate nursing station. So, all these things add up to the cost.”  The cost varies between different facilities, and one needs to check affordability and convenience before checking in.

Says Ankur Gupta, joint managing director, Ashiana Housing: “The sizes for one, two, and three-bedroom units range from about 900 sq. ft. to about 1,600 sq. ft. So, you’re looking at a cost of about Rs 55 lakh to Rs 1 crore. The one-bedroom unit costs around Rs 55 lakh, two-bedroom about Rs 65 lakh, and three-bedroom around Rs 1 crore.”

Apart from the buying cost, long-term maintenance can also be a concern. Says Vimal Nadar, senior director and head of research at Colliers India: “When customers buy a home, builders charge for facilities, such as park, clubhouse and so on. Also, every facility has to be more senior-friendly. So, the cost increases. Then, there is maintenance, so the cost increases yearly. There are also problems regarding the financing of senior living procedures.”

Due to the cost factor, some people prefer to lease the house instead of buying, as in the case of Parimala. She says: “Buying means shelling out money. But when our time is over, there could be problems with selling (as her children are settled abroad). We thought we can live on lease, as long as we live.”

After the lease period, the company would deduct Rs 50,000 from the deposit amount for wear and tear, and the rest would be returned if the family decides to exit the property.

Lack of Regulations: Says Nadar, “Right now, there is not too much regulation as to what type of specifications need to be followed concerning senior living; there are no standard guidelines regarding building layouts, for say, kitchen, bathroom, lifts, ramps, staircases, corridors, lighting, safety, security, access to healthcare, etc.”

The industry needs more standardised regulations to ensure quality. At present, different properties offer different facilities.

“I know a few state governments have taken the initiative, like Maharashtra, which has introduced certain guidelines for senior living projects, but that is a one off. We need certain uniformity, maybe at the state level, which is again unified at a central level,” he adds.

The sector also requires better infrastructure and services to meet the specific needs of seniors; not all senior living facilities are well-equipped or give value for money. Nevertheless, senior living projects are already catching people’s attention. It’s best to do your due diligence before arriving at a decision.

***

C.M. Nagpaul (80) With Promila (75), Bhiwadi

Key Senior Housing Markets

Most of the senior housing projects are located in south India

The leading senior housing markets are Bengaluru, Chennai, Coimbatore, Pune, and Delhi-NCR, dominated by key players like Ashiana, Manasum, Paranjape, Primus Life and Antara.

However, south India has a higher demand for senior housing than other regions. According to CBRE’s Golden Opportunities from the Silver Economy report published in April 2024 year, Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, and Telangana command 62 per cent of India’s total market share for senior housing, while seniors in these states account for 25 per cent of their combined population.

South India, the report notes, also has leading healthcare players, and a higher percentage of parents of non-resident Indians (NRIs), indicating the financial wherewithal they wield, for the market to grow.

Says Reddy of Naredco: “The senior living market is expected to reach approximately $12 billion by 2030, up from its current size of $2-3 billion as per Colliers. This growth is driven by both private and institutional investors. Also, the sector is beginning to attract foreign direct investment (FDI). Although exact figures are not widely available, there has been increasing interest from foreign investors, particularly those from countries like Japan and the US, where senior living is a mature segment. They see potential in India’s ageing population and the growing demand for quality senior living.”

South’s significant market share is also attributed to the changing family structures. Varayur explains, “Compared to north India, many people in the south are from the working class, and they would have moved out, and families have become already nuclear, whereas, in the north, many are still in the business class and stay in a family or joint family.”

However, satellite cities on the outskirts of Delhi NCR, like Gurugram and Bhiwadi, are also drawing buyers’ attention. C.M. Nagpaul, 80, who retired as general manager of National Fertilisers in 2004¸ and now lives in Ashiana’s Nirmay Senior Living Project in Bhiwadi, Rajasthan, says, “I am here since 2021. It has low maintenance costs with a 24-hour medical and ambulance service. I can breathe pure oxygen; there is no noise or traffic pollution, and no outside vehicle gets in.”

Before coming here, he and his wife lived in a 2,000 sq. ft. four-bedroom house in Noida. His two sons are settled abroad, in the US and the UK.

sanjeeb@outlookindia.com