India’s elderly are slowly breaking tradition. Instead of depending on their young to look after them in their golden years, they’re taking matters in their own hands. They’re choosing a life of independence and self-sufficiency. This is made possible by the retirement communities that are beginning to crop up around the country.
According to a report from Jones Lang Lasalle, in 2012 India had close to a 100 million senior citizens and the number is expected to double by 2030. Although the concept of retirement communities is still in its infancy, the expected rise in the population of senior citizens is proof of a burgeoning market for the same. Added to that, the number of young people migrating to other countries for work is increasing significantly. This means that the elderly are seeking options to retire peacefully without the stigma and poor treatment from an old-age home.
Enter retirement communities – a combined offering of real estate and services such as medical, religious and intellectual for senior citizens. In India, the majority of retired communities are in the South since that is where most of the young migrants hail from. Coimbatore leads the pack followed by Chennai, Pondicherry, Madurai and hill stations. These communities usually offer once of three working models – sale, lease or deposit (in terms of real estate). In addition, there is usually a services agreement and a monthly charge.
The upside:
The fact that appeals to most senior citizens is that retirement communities offer them an option of dignity, to live life on their own terms. There are facilities to cater to their well-being both emotional and physical. They also find it comforting to be amidst others closer to their own age. For their families, it is a comfort to know that their elders are being taken care of by professionally trained teams.
Drawbacks:
Although more real estate players are joining hands with hospitals to establish more retirement communities, the concept is still at its nascent stage in the country. The service models are in no way mature and have a long way to go. These projects are also not for those with shallow pockets. Individuals who wish to be part of such projects need to be prepared to pay for the house as well as the services offered. Additionally, the nature of investment in this form of real estate is illiquid.
Realty counsel:
Investing in real estate projects is very different from investing in a home in a retirement community. It needs to be approached with a difference as well. For starters, one will find that one has to pay a premium for the comforts offered. Residents feel the extra cost is well worth the investment. Secondly, one must find out what terms the community is offering in terms of the property – is it transferable by way of will? Can it be rented out by the heirs after the owners’ passing? Since the property is illiquid, it is prudent to start by renting out a property to ensure that one is comfortable in the community before making a purchase commitment.
The realization that retired years are not for withering away is a happy one. With time, the services for senior citizens should improve by leaps and bounds. Opportunities to be part of such communities will gradually become more affordable and also more sought after.
