Developers move into Indian retirement sector

A Primary Health centre in Tamil Nadu Photo: CDC Global

A growing number of developers are moving into India’s retirement sector, as the country’s elderly population expands.

The number of senior citizens in India is expected to rise to 118 million in 2016, a trend that has placed an emphasis on their importance to property developers. Indeed, areas such as Pune, Coimbatore, Goa, Chennai, Bangalore and Dehradun have seen residents move away after spending their youths there, only to move back again after retirement, turning them into senior living hotspots.

“While some companies enter it as part of their corporate social responsibility, charitable organisations are also found in the sector,” explains Manish Kumar, National Director of Strategic Consulting at JLL India. “Realising the upside potential and to have first-mover advantage, a few prominent corporate houses have also forayed into senior living.”

Projects are now springing up in the outskirts and suburbs of key metros, says JLL.

“[While most] are holistically dedicated to senior citizens, many developers are also launching integrated townships, wherein a proportion of total units are dedicated to senior living along with generic residential developments,” adds Kumar.

Most senior living projects consist of affordable homes or occupy the middle of the price segment, which not only cater to senior citizens’ budgets, but also ensure quicker movement of inventory and, therefore, higher absorption levels for developers.

Many developments have daycare facilities to care for residents’ minor ailments, while some also team up with local hospitals for emergency care in serious medical cases.