The demand for senior housing solutions is rising with the global ageing population, particularly in India. An increasing number of elderly individuals, having lived in regular housing, are now choosing to relocate to senior living facilities for enhanced care and social support.
The southern region dominates the senior housing market, accounting for 68% of all projects, while only 14% are in the northern part of the country. A recent survey highlighted the importance of senior housing, with 78% of participants expressing a desire for such accommodations. This growing demand is fuelled by the need for social engagement and support services, including daily activity assistance, healthcare, and leisure activities that foster relationships.
Transitional living
There are two types of living units available for sale or on lease. In India, 85% of units are for outright sale, while only 15% are offered on a lease or rental basis. Seniors aged 60 to 75 in good health seek independent living, where amenities such as outdoor green spaces, club facilities, indoor games rooms, card rooms, cafeterias, community halls, temples, etc., are available.
On the other hand, assisted living care-homes, usually in a single-building format on a room lease model, prioritises healthcare. It offers services such as dementia care, palliative care, geriatric care, chronic illness care, and post-operative care. One observed challenge is that seniors in relatively good health prefer not to stay with those who require support due to poor health.
Common challenges
Seniors often find it challenging to uproot themselves from their homes and move to retirement communities. Most of them look for affordable independent-living units with health and hospitality infrastructure on a lease basis. They prefer to live in the vicinity of hospitals, temples, and shopping areas. They are also willing to pay a reasonable service charge to an operator who addresses all their concerns, by regularly providing food, healthcare, housekeeping, laundry and concierge services, while keeping them engaged in multiple social, cultural, and recreational activities.
The solution lies in developing large Continued Care Retirement Communities (CCRC). However, developers prefer selling these units at 10-15% premium that it commands over regular residential units to recover their investment with profit. Rental yields on residential units are low in range of 2-3% of capital value and not expected to increase soon.
Market forces or changes in government policies can help address the need for senior housing in the following ways.
The market cannot rely on the government for every problem it faces, and solutions should be found within existing market dynamics. These units need to be made more attractive to encourage seniors to purchase or pay high lease rates. Projects should appeal to Private Equity (PE) investors to fund them, which can only happen if rental yields become comparable to commercial properties.
Senior living projects require innovation in several aspects:
Healthcare: Ideally located close to multi-specialty hospitals, they need to have basic health infrastructure providing nursing care, physiotherapists, massage rooms, doctors on call, and lab and medicine delivery services. The ability to respond to health emergencies and support in activities of daily living is essential.
Technology: Technology integration is crucial to ease living and respond to emergencies. Smart home solutions and wearable devices, such as smartwatches, can monitor health and location without intruding on personal space.
Designs: Facilities need to be designed by architects with international experience. Designs must consider Indian ethos and cultural, social, and religious sensitivities.
Activities: Seniors need to be engaged in a variety of activities to enjoy the fruits of their successful years of working.
Concierge services: Premium services, once available only to large corporate clients, can be easily provided for seniors who may find it challenging to manage evolving technology, multiple external service providers, and ever-changing norms of banking and government bodies.
Based on the statistics, it is imperative to approach senior housing differently. Innovative housing solutions that meet seniors’ basic needs and improve their overall quality of life must be explored and implemented as the demand for senior housing grows.
The writer is CEO and Founder, Nema Eldercare.
