10 Key Findings Of PHD Chamber's Senior Housing Report

In our pursuit to explore our individuality and freedom, we have drifted away from our homes. For many of us, the separation was caused because we had to move out to earn our living. Whatever the case be for us leaving the nest, senior in our homes are left behind, to fend for themselves in their old age. The number of this population is growing day by day. In such a scenario, the demand for elderly-friendly housing is growing. Real estate developers are acutely aware of that, and are seen doing their level best to provide better housing choices to this segment.

According to a report recently released by the PHD Chamber of Commerce, Senior Housing: A Sunrise Sector in India, the size of this housing segment at present stands at $1.26 billion, and is expected to touch $7.7 billion by 2030.

The report that surveyed 30 developers involved in senior housing projects, 486 senior housing residents and 2,598 prospective consumers, provides certain interesting insights. PropGuide lists some of these:

The demand

The elderly population contributed 5.6 per cent in 1961 and 8.6 per cent in 2011 to the total population of the country. It is estimated that this contribution will reach to 10.7 per cent by 2021, 12.4 per cent by 2026 and 23.6 per cent by 2050. India, at present, has 10.4 crore elderly people. This population is expected to reach 32.4 crore by 2050, of which 9.7 crore will be living in urban areas.

Developers operating

Of the 30 developers surveyed, 60 per cent are Indian players, 30 per cent are operating in a joint venture with Indian companies and 10 per cent are of the foreign origin. Of these, only five per cent of the developers have developed more than 10 projects in this segment.

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Cost

The square foot price of senior housing projects varies across India. According to the report, the prices in the western region fall in the range Rs 9,000-10,000 per sqft; for southern region, it is Rs 4,000-8,000 per sqft; for northern region, it is Rs 5,000-7,000 per sqft. The average price range of a 1BHK apartment in such projects ranges between Rs 25 lakh and Rs 40 lakh. For a 2BHK apartment, prices may vary between Rs 40 lakh and Rs 80 lakh. A 3BHK unita may cost anywhere between Rs 80 lakh and Rs 1.5 crore.

Preferred size of apartment

Of the 486 people surveyed, 65 per cent respondents purchased a home in senior housing projects. Of this, 43 per cent respondents bought a 2BHK apartment, 26 per cent a 1BHK apartment, 21 per cent a 3BHK apartment and only 10 per cent purchased an independent villa.

Also read: Here's Why Senior Citizens Should Consider Real Estate Investment

Timelines

It takes about 3-12 months to complete the procedural formalities to start a senior housing project in the country. The delay is attributed to various time-consuming formalities, including land registration, obtaining a construction permit, electricity connection and various other formalities.

Sale model

The report says around 60 per cent developers offer complete sale model, 30 per cent offer only lease-deposit model and only 10 per cent provide pure rent model. Of the total, 30 per cent developers have launched a post-retirement employment assistance programmes and 70 per cent offer loan facilities to the buyers.

Facilities provided

The facilities provided in such projects vary across India. According to the findings, 25 per cent of the developers offer facilities, including a clubhouse, a swimming pool, a medical and physiotherapy room, centrally-heated apartments, a senior-friendly gym, a bar and even virtual golf. A majority, 75 per cent of the developers, offer facilities, including a TV room, a medication room, Wi-Fi services, leisure and activity rooms, a banquet hall, a restaurant, a cafeteria, a conference room, a common lobby area, a library, a salon & spa, daily needs stores, emergency call buttons, bill payment services and emergency medical services.

Highest number of projects

The western region of the country leads in terms of the number of such projects with 53 per cent, followed by the southern region with 25 per cent and the northern region with 22 per cent.

Destination of choice 

At present, senior housing projects are coming up in the suburbs of the key metros and in some getaway destinations. Some of the prominent cities include Coimbatore, Pondicherry, Kerala, Goa, Mumbai, Pune, Jaipur, Haryana, Delhi and Dehradun, etc.

Best return on investment

The western region with 43 per cent leads the chart of providing highest percentage of return on investment in such projects, followed by 32 per cent from the southern region and 25 per cent from the northern region.