Retired smart

Om Prakash Gupta didn’t know English when he went to the US for higher studies in 1970. His university in Oklahoma had a tie-up with the residents of a local senior living project to teach the language. Gupta not only learnt English, he also saw how the elderly were cared for at the centre with special medical, recreational and other facilities geared to their needs. Almost 25 years later, when Gupta was trying to sell his residential project in Bhiwadi, on the outskirts of Delhi, he found that most of the buyers were senior citizens who were drawn to the vast open spaces and affordable pricing on offer. That immediately brought back memories from his university days and he was soon researching the potential for senior housing in India.

By 2003, his company, Ashiana Housing, was ready with its first project for senior citizens at Bhiwadi, replete with elderly-friendly features such as grab-bars in bathrooms, anti-skid tiles, low-height shelves, ambulance-on-call and many more.

“The response to the project was stupendous. We hit the high market, selling 630 homes in less than three years, instead of the targeted four years,” says Ankur Gupta, son of the now-deceased Om Prakash Gupta and the joint managing director of Ashiana Housing.

The company has projects in Jaipur and Lavasa as well. “Another project in Bhiwadi will be ready by October,” says Gupta, whose next target is Chennai.

Retirement planning

By 2025, there will be around 173 million people who are over 60 in India, more than double the 76 million today. Like Ashiana, many developers including Paranjape Schemes, LIC Housing Finance and Tata Housing are eager to grab a share of the lucrative ₹4,000-crore assisted living market in India.

“Demand is expected to grow significantly over the next five to 10 years. More real-estate developers will explore this segment as part of their larger, integrated township developments. Cities that have traditionally been retirement destinations will see significantly more projects than other parts of the country,” says B Sridhar, senior consultant, Strategic Consulting (Education, Healthcare and Senior Living) at JLL India.

Pune, Bangalore, Chennai, Hyderabad, Jaipur and Goa are among the preferred cities. “The demand is growing steadily. When we started (in 2001), the concept was new. Now it is well-known. It will take a few more years for the market to mature,” says Shashank Paranjape, MD, Paranjape Schemes Construction. His company has five senior living projects in Pune, under the Athashri brand, and six more planned across the entire country.

In the past, senior housing projects largely came up in tier II and III cities as these were seen as preferred destinations. But tier I cities such as Mumbai, Bangalore and Chennai are now in demand too, says Sridhar. Key projects have been launched and the response will be keenly watched, he adds.

There are several reasons that are fuelling the demand for assisted living. “The biggest threat in cities is the lack of physical security for the elderly. Moreover, due to socio-cultural reasons, people don’t want to stay with their daughters. And if children are living abroad, parents find it difficult to adjust there,” says Dr Sheelu Srinivasan, the founder of Dignity Foundation, which has a senior living project in Neral, about 80km from Mumbai.

The price and the promise

Under assisted living, the elderly look forward to an environment in which all their needs are met. Sanjeev Sathe, an air-conditioning consultant to industries and commercial projects, chose a project in Lavasa for his wife and him. “I spend four to six weeks with my son in the US. Rest of the time, I am in India. The facility has like-minded people in a similar age bracket,” he says. In contrast to Mumbai, where Sathe has spent a better part of his life, at the facility people have time to socialise and interact with each other. The pleasant weather round the year at Lavasa is another major attraction.

Little wonder then, that when Srinivasan launched her project in picturesque Neral in 2006, the 62 cottages were sold within days. It has 100 residents at the moment, and she is ready to start the next phase.

Compared to regular housing, it costs more to build a senior residential project with special facilities and large common spaces for recreation and medical services. “Our capex for these projects is about 30 per cent higher,” says Paranjape.

The construction cost of about ₹1,300 per sqft increases by ₹50-100 in senior housing projects, says Gupta. “But the selling rates are market-driven. It depends on the demand-supply situation,” he adds. So while Ashiana’s projects in Bhiwadi and Lavasa sell at rates similar to those of other housing projects, the prices in Jaipur are higher because of greater demand there.

“We sell at market price (without charging premium) because they are made for senior citizens, who have limited money to spend,” says Paranjape.

Living arrangements

As the concept of senior housing is still taking root in India, there isn’t a one-size-fits-all approach. The only pre-condition is that at least one of the residents in each house should be aged above 55. Children can buy the houses for their elderly parents as well.

For now, developers follow their individual models. Ashiana, for instance, sells the house and charges a monthly maintenance fee from the residents. Medical services are charged according to use. Paranjpe charges a one-time deposit of ₹3 lakh, and there is no monthly maintenance fee. Food is charged at ₹40 per meal. “We don’t make profit on services like food. Our non-profit foundation takes care of it,” he says.

As a trust, Dignity Foundation follows a different model. It offers membership for a one-time deposit of ₹14 lakh, of which ₹9.5 lakh is refundable on expiry of the membership. “The trust retains ₹4.5 lakh as maintenance and sinking fund,” says Srinivasan. An additional ₹10,000 a month is charged for housekeeping, security and medical facilities, and ₹6,000 for food.

With age, medical needs increase and it helps to live in projects that offer specialised healthcare. “When joints have problems and balance is wavering, emergency response and care services become important,” says Gupta. That also explains why the Max Group decided to enter the senior living space. In 2013, it launched its first project — Antara Senior Living — at Purukul, in Dehradun, at an investment of ₹515 crore.

“Max India is well-equipped to take care of the healthcare needs of seniors with its hospitals business,” says Tara Singh Vachani, CEO of Antara Senior Living.

Like in most such projects, the apartments here have wheelchair manoeuvrability, senior-friendly furniture, use of large diffused lights rather than point illumination to reduce the intensity and emergency call buttons among other features.

“Seniors prioritise their health and happiness over other things. And we ensure they get that in our project,” says Vachani.

The wonder years

The need, however, is to go beyond just the physical infrastructure, says JLL’s Sridhar. “Indian companies need to learn a lot from the developed markets in terms of service delivery,” he says.

Srinivasan agrees: “Housing for senior citizens is not just about brick-and-mortar. It is about providing comprehensive care along with housing.” So her team brings in a music teacher for interested residents, or arranges for interesting craft material for those eager to get their creative juices flowing.

This is completely in tune with the findings of a study conducted by AZ Research Company in early 2013 which showed that more than 75 per cent of the seniors surveyed wanted to socialise with others, go clubbing, party, exercise, play sports and shop for luxury goods in their retirement years.

Alka Singh, the 50-year-old principal of Smart Kids International School in Jaipur, swears by senior housing. She lives at the Ashiana facility with her husband and mother-in-law. Her son works in Goa, while her architect daughter lives in Chandigarh.

“I have started living my life now. I spent the first five decades working hard to bring up children and earn money. Now, I have reclaimed my life. I am re-living my college days,” says Singh. Each evening, she looks forward to the musical concerts or games or bhajans organised by the housing society. “Sometimes, we all just cook and share our food. And since we have lived a major part of life, there are enough tales to share with each other and while away time,” she says.

COMMENT NOW