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Retirement Homes : Regulation and Redevelopment


Retirement Homes : Regulation and Redevelopment

Last updated: March 10 2019
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  • Retirement Homes : Regulation and Redevelopment

    Retirement homes are a newly emerging trend in India because of increased longevity and the spintering of the joint family. As more and more children migrate to far-off places ageing parents need secure environs where they can live with peace and dignity.I would like to start a new topic where we can exchange info about this sector

    Pune, Dehradun, Goa and Kerala are fast emerging as preferred destinations for the retired and would-be retirees.

    While Pune and Bangalore, the oldest destinations for retired citizens, offer several models to choose from, developers in Dehradun, Kerala and Goa are catching up fast.

    They have designed serviced apartments tailor-made to suit the needs of senior citizens. And of course, they are also building on the regions' inherent tourist potential with planned investment.

    Among the developers who have forayed into this segment are several reputed ones such as Paranjpe Builders and Gera Developers of Pune, Bangalore's Brigade group and the UK-based Goldshield, which is developing homes in Goa, Kerala and Dehradun. Retirement homes are also coming up on the outskirts of Mumbai and Bangalore.

    The UK-based Goldshield is looking at developing a "Well-being Village", in India. The first such village is expected to open in Mumbai in December this year.

    You can either buy a house outright or pay a deposit and a rent for the rest of your life.

    The deposit will revert to your children as part of your estate. But, if you choose to buy a house, then it cannot revert to your children, as most of these colonies have an age bar - most don't accept people under 55 years of age. Nor is anyone allowed to buy a house as an investment.

    However, builders, such as Paranjpe, offer a buyback scheme for these homes after the demise of the resident couple.

    This is part of the original sale agreement with a built-in price escalation.

    Says Gaurav Mashruwala, a Mumbai-based wealth management consultant, "It makes a lot of sense to invest in retirement homes.

    "People are living much longer - with or without the spouse - so they need the security of knowing that there is someone to take care of their everyday needs, which is what these new retirement homes are offering."

    At the industry level too, there is a lot of excitement about the concept. Says Ajoy Veer Kapoor, promoter and managing director of Saffron Asset Advisor, "Retirement homes segment is the latent undiscovered value creation opportunity, which is going to happen in the next 5 to 10 years."

    Recently, Yatra Capital raised 100 million euros, which Kapoor will manage.

    "We are looking to invest in retirement home projects very actively. It is a different model of housing. Here, you have retirement homes, healthcare and tourism, all combined into one," he adds. As the income levels of the upper middle class grow, analysts expect several takers for this concept, though it will remain a niche segment.

    While the current offerings are targeted at the upper end of the market - between Rs 50 lakh (Rs 5 million) and Rs 2 crore (Rs 20 million), Mashruwala feels that as market matures, more options will come up at the lower end of the spectrum too.

    Analysts also feel that though mortgage lenders have not started to look at this segment, big private sector and public sector banks will soon find the retirement home segment a lucrative area to focus on.

    Mashruwala points out that the concept is aimed both at younger couples who will retire in the next 15 to 20 years and those who are due for retirement in the next 5 years.

    Developers are also looking at a big NRI retirement market and building homes for the high-income couples working abroad in the US, Canada, Europe and even the Middle East who will retire in the next the 3 to 5 years.

    "It is a big opportunity. There are couples working abroad, who would want to spend 3 to 6 months in a year in India. Retirement homes could target them as well," said Kapoor.

    With several India-focused real-estate funds getting launched overseas, analysts are expecting a sizeable amount to go into funding retirement home projects.

    Depending on the requirement, retirement homes are likely to spread across the country. "Some people may want to spend their retired life near places such as Goa, where you have good ambience and surroundings," they said.

    Investment for life

    * Building on he regions' inherent tourist potential with planned investment, developers in Dehradun, Kerala and Goa have designed service apartments tailor-made to suit the interests of senior citizens
    * You can either buy a house outright or pay a deposit and rent for the rest of your life. The deposit will revert to your children as part of your estate
    * Most of these colonies have an age bar - people under 55 are not accepted
    * The current offerings are targeted at the upper end of the market - between Rs 50 lakh and Rs 2 crore
    * Developers are also looking at a big NRI retirement market and building homes for high-income couples working abroad in the US, Canada, Europe and West Asia, who will retire in the next the 3 to 5 years
    * Developers such as Paranjpe Builders and Gera Developers of Pune, Bangalore's Brigade group and the UK-based Goldshield have forayed into this segment.

    Last edited March 10 2019, 07:05 PM.
  • #2


    Re : Retirement Homes : Regulation and Redevelopment

    retirement/vacation homes are basically a place to relax, ts all about the experience that you get from homely people and the atmosphere that surrounds you, Dalhousie a hill station in himachal pradesh is slowly emerging to be one such specific place, from maharaja's till brits and now people who look for a serene environment and majestic views are looking forward to that, its a place worth every dime


    • #3


      Re : Retirement Homes : Regulation and Redevelopment

      retirement home india

      If you wish
      1. To live away from city -30km
      2. To live amidst 800 acres of fruit orchid
      3. Moderate climate 20-29 degree Celsius
      4. Good sunshine
      5. Good water
      6. Excellent breeze
      7. Medical, dining(north/south/continental), transport facility
      8. International schools within 10km radius
      You may read on.

      This place is in Tamil Nadu bordering Bangalore. I live here peaceful and contented.


      • #4


        Re : Retirement Homes : Regulation and Redevelopment

        Hello Peacecare,

        Your post sounds interesting, would you mind providing bit more information like:

        1. What is the mix of the community like?

        2. Are there any people who cannot understand Tamil?

        3. Is the food reasobaly good and have ample choices?

        4. How is the acxcomodation purchased or leased? What are the charges for a couple?

        It would be nice if you could provide the contact details.




        • #5


          Re : Retirement Homes : Regulation and Redevelopment

          Senior living segment needs policy thrust


          India today is home to over 98 million seniors above the age of 60 years, and this demographic is growing at the rate of 3.8 per cent per annum. The population size would reach 240 million by 2050 (Source: Jones lang LaSalle report 2012). Therefore, there is a huge potential in serving this demographic and senior living is one of the most comprehensive offering which is coming up in a big way in India.

          According to a research conducted by AZ Research Company in early 2013, three out of every four seniors are open to moving to an assisted senior living community in India. Today seniors are living alone in an environment where they are not satisfied with the current security options and 80 per cent seniors are concerned about break-ins and theft. As many as 70 per cent want to move out of town into a home of their own and 42 per cent seniors rank security among the top three requirements from a living space. More than 80 per cent seniors seek to sustain lifestyle or improve it as they do not wish to ‘retire’ and more than 75 per cent seniors want to socialise, club, party, exercise, play sports & stay healthy and active. Therefore, there is a positive upswing in the demand for such communities in India and this segment is emerging and evolving very fast, though still is in a nascent stage. “Senior living is a very niche sector and it is important to serve this demography with greater emphasis on concentrated healthcare services and seva bhav”, says Tara Singh Vachani, CEO Antara Senior Living, who has launched a senior living project in Dehradun. In an interaction she talks about the trends and the facilities that are essential for such projects. Excerpts:

          Why has the of senior living trend not caught on in India so far?

          In contrast to senior living in the W est, the concept of housing for seniors as a specific asset class in India continues to have social stigma associated with it, which has restricted the growth of the sector at large. However, this trend is catching up in India and there is a positive upswing in the demand for such communities. There is now a growing realisation among urban households, who in the past 20 years have witnessed a marked increase in nuclear families, that families are no longer equipped to take care of their aged family members. In this changing social environment, concepts such contemporary retirement resorts are becoming acceptable and popular. While this has prompted developers to come up with projects targeting the independent seniors, the country is yet to see integrated continuing care retirement communities.

          What kind of senior living projects are more in demand in India — assisted living ones or the usual ones.

          Progressive seniors are looking for residential options that provide them a holistic lifestyle, where they do not have to worry about the day-to-day chores. In keeping with this thought, I feel that assisted living is projects will be more in demand.

          Do you think government should give some incentives to this segment?

          The government should pay attention to senior living and identify it as a separate sector. Policies should be drafted to secure the future of seniors in the country.

          You have launched a project in Dehradun recently. What are the unique features of this?

          Antara has been created with a specific clientele in mind. From a full time on-site nutritionist to facilitate healthy food choices, to a 24/7 concierge service, it offers a worry-free lifestyle in a quiet, enchanting setting; while still being accessible to and from main cities across the country like Delhi, Mumbai, Bangalore, Kolkata by five daily flights. It is located in Purukul, Dehradun. Antara is set against the backdrop of Mussoorie hills and is spread over 20 acres. Designed by internationally renowned architects Perkins Eastman from New York and Esteva I Esteva from Spain and built by Shapoorjii Pallonji.

          The residents will be provided housekeeping, maintainence and grocery buying and several other such services. Residents can choose from over 200 beautiful apartments at 1500 -10,000 sq ft ranging in price from Rs 1.35 cr -Rs 8.25 cr.A dedicated, service-centered workforce of over 300 people will cater to a resident’s every need.

          How much investment you are making in this project.

          The project cost for Purukul is Rs 520 for which the equity investment of Max India is Rs 115.

          What are your future plans?

          Currently the focus is on developing one community in Dehradun which will be operational in 2016. Post which, we will take a measured approach to growth.
          Please read IREF rules | FAQ's


          • #6


            Re : Retirement Homes : Regulation and Redevelopment

            The concept of housing for the elderly is increasing with the increase in incomes and longer life expectancy. Many builders are catering to the needs of the senior citizens. But, it is very important to think whether to buy or rent a home especially when you are in your golden areas. Here are some points that you may consider before taking your decision:

            Do you want to leave an inheritance behind?

            The foremost important thing is to know whether you want to leave an inheritance behind. If the answer is no, then buying a home doesn’t make much sense. In such a scenario, renting would be a great option. But, if you really want to build equity then buying would be a good deal.

            Do you want to enjoy flexibility?

            Renting would give you flexibility to experience a new location or lifestyle without making a lifetime commitment. This is great if you want to experiment with your environment. If you are someone who would love to travel after retirement, then renting is a great option. However, if you want to live in one particular city, then owning an apartment is a good option.

            Are you ready to bear maintenance costs?

            On buying you have to bear the cost required while maintaining the home. On renting this responsibility will fall on your landlord’s shoulders. But, renting comes out to be expensive.

            Would you want a source of income post-retirement

            Buying an apartment is a great option if you want to create a source of income post-retirement. You can take two floors and give one on rent. This will give you a good financial support during your retirement. While buying property to earn rentals keep the following tips in mind:
            • Evaluate the money you need.
            • Buy apartment in cities where you can expect price appreciation and a reliable monthly income.
            • Make sure you hire your agent carefully.
            Tax Benefit

            If you want to avail tax benefits on a reverse mortgage loan, then you can buy a home. In this, you can go to bank and mortgage your self-owned or self-occupied home in return for which the bank will pay you a regular income. This income is non-taxable. Thus, it comes out to be a lucrative option for the senior citizens.


            • #7


              Re : Retirement Homes : Regulation and Redevelopment

              House hunting could be a challenge, especially if you are a first-time home buyer. Here are some tips that will simplify the house hunting process for you:

              Hire a professional agent

              Appoint an agent before you begin the home buying process. A professional agent would help you find the right properties based on the parameters you share. He would take on property visits, help in home inspection, get you the right loan and even look after all the paperwork. This agent will be by your side throughout the process, making it easy and reliable.

              Know your finances

              Knowing your budget and arranging the finances is a prerequisite for making the process of house hunting smoother. This will help you in setting realistic goals. It also eases the process for the agent to find the right fit for you. And, also helps you know your financial standing and thus, decide on the loan you would need.

              Be futuristic

              It is important to opt for a house which offers you a peaceful setup and will be a good neighborhood to live in even two decades down the line. For this, check the location and the infrastructure of the locality, and the developments in the pipeline. In addition to this, you must ensure that the home is not hard to finance or hard to insure, in case you plan to sell it off in the future.

              Inspection is a must

              Visit the property and also, make sure that a thorough home inspection is done on the same. This saves you from future setbacks. Know about any structural, or geological problems and get them resolved before you finalize the deal. For this, hire a professional home inspector and satisfy queries related to cracks, odd smells and water stains. All these efforts will ensure that you are investing in the right property.


              The home you are considering to purchase must be in an authorized locality, have clear title and other important documents. In order to ensure this you must thoroughly understand the documents and for this take help of your agent and lawyer.


              • #8


                Re : Retirement Homes : Regulation and Redevelopment

                Considering the fact that by the end of the century, senior citizens would be forming nearly 34 per cent of the population of India, new guidelines have been issued by the centre for the regulation and redevelopment of retirement homes.
                Talk TRUE; Talk IREF


                • #9


                  Re : Retirement Homes : Regulation and Redevelopment

                  On March 6, 2019, the government has informed to have issued guidelines that will aim to protect the rights of senior citizens and address their special needs. As per the statement, the Union Housing and Urban Affairs Ministry will be constituting a task force for constant dialogue with states and other stakeholders. The task force will be ensuring the implementation of the guidelines.
                  Talk TRUE; Talk IREF


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