Senior living homes in India promise graceful ageing complete with manicured lawns, smiling residents and round-the-clock care. But choosing one isn’t just about comfort. It is about ownership, service models, finances and fine-print. Here’s what every family should know before considering this path.

What it is

Let’s be clear, retirement homes are different from old-age homes. They cater to active seniors, who want independent living with support. Some are “assisted living” models for those with medical needs, while a few offer step-up care like support for those with memory-related conditions. Before choosing one for yourself or your parents, ask: is the person healthy and independent or do they need daily care? A wrong fit can be frustrating and expensive.

Money wise, retirement homes typically involve two kinds of costs: the property itself (usually a one-time purchase, though some offer leasing options) and a recurring monthly service fee. Purchase prices can range from ₹30 lakh to over ₹2 crore depending on location, size and amenities. Monthly charges for meals, housekeeping, security and basic medical help range from ₹30,000-50,000. Most places don’t allow you to hire maids and help from outside.

The monthly fee can exclude several things such as caregiver support, physiotherapy, doctor consultations or even nursing assistance. These may be billed separately. Most operators hike fees yearly, so today’s ₹30,000 may not hold long.

Also, factor in GST on services. Services such as medical monitoring or elder care may attract GST unless provided by a recognised clinical establishment. The tax treatment hinges on how the services are packaged and who is providing them. Always ask whether GST is included in the quoted fees.

Costs and clauses

Unlike typical apartments, retirement homes may come with complicated ownership structures. Some offer full sale deeds (allow legal ownership and easier inheritance), while others use leasehold models or cooperative society shares (may restrict resale or limit asset transfer to heirs). In many such models, resale is either restricted to seniors or must go through the developer, making capital appreciation modest and exit liquidity low.

All retirement home projects are considered real estate under the RERA Act and must register if they meet the threshold criteria. However, RERA mainly governs the real estate component — the unit, project timelines and delivery, not the ongoing services such as meals, medical care or housekeeping. And it’s these services where most disputes tend to arise. So don’t assume RERA coverage means end-to-end protection.

Some cities such as Pune, Mumbai and Ahmedabad offer senior citizens property tax rebates if the home is self-owned and used as a primary residence. But benefits may apply only if the home is registered in the senior’s name and isn’t part of a lease or company-held arrangement. Don’t count on it unless your legal documents clearly qualify. Some States like Maharashtra also offer lower stamp duty for senior citizens buying retirement homes.

Medical infrastructure is often a key reason families consider this route. Most projects promise 24x7 medical support, but the level varies. Some have a nurse or visiting doctor; others offer clinics or tie-ups with nearby hospitals. Ask for specifics, especially if the resident has chronic conditions.

One of the big selling points is the social aspect: shared dining, group yoga, movie nights, on-premise/off-premise temple visits. For many seniors, especially those living away from children, this is a plus. But not everyone enjoys structured routines. Some homes don’t allow long-stay (beyond 60/90 days) with your own children. There can be restrictions on keeping pets. Others have uniform food menus. Trial stays, if offered, help test the lifestyle before committing.

Before you sign

Before committing to any retirement home, ask a set of non-negotiable questions and dig for clear, written answers.

Start with resale and rental rights. Can you sell the unit freely, or only via the operator? Some restrict resale to seniors or need society nods, limiting liquidity. If you’re looking at it as a future fallback asset, this point matters.

Understand the exit penalties or transfer fees. Some operators charge a fixed exit fee, while others may take a percentage of the resale value or impose transfer charges. Make sure these are spelled out upfront.

Then, clarify who runs the show. In many projects, the real estate developer owns the property while a separate service company handles operations. Ask if they’re the same entity, and what happens if the service provider changes or withdraws. Your quality of life should not suffer.

Check for an active residents’ body or grievance forum. If fees spike or services dip, you need a collective channel to raise concerns.

One often-overlooked risk is operator exit. What happens if the developer or service company shuts down or walks away? Is there an escrow fund, replacement plan or resident control mechanism?

Finally, don’t just review the sale deed. Always review the service agreement as it defines daily entitlements. Check for fee escalation clauses. A modest annual hike is common, but some leave it open-ended. Ask if hikes are inflation-linked, percentage-capped or left to the operator’s discretion.

Remember, you are not buying space. You’re signing up for a bundle of services anchored in real estate. That means your primary return isn’t financial, it’s peace of mind, convenience, and social engagement. In most cases, these homes are better viewed as consumption, not investment.

Smart Check
Full sale deed or leasehold? The structure shapes your rights, risks, and returns.
Mind It
Match ownership model to needs
Look for exit penalties or transfer fees
Find how annual service fees are hiked

Published on June 28, 2025