Indian realty has come a long way from being unorganized and scattered to being regulated (ratified by cabinet) and contributing 5% to the GDP. Commercial and residential boom in realty sector has partially been an outcome of growing FDI and investments from consolidated developer groups. Real estate substantially relies upon the mounting demand of housing and increasing disposable incomes of working class. However, many niche sectors of realty array remains undiscovered till date.
Housing for elders is a pleasant addition in sector of housing in India. The elders owing to their age and vulnerability have come across to be the novel target for realtors to cash upon. Retirement housing in India is an awaited relief as unlike the west, this segment of society has no social security bills that they can avail. The realtors have projected this sector to have immense potential in next few years. Demographic composition of India is in favor of young strata as more than 55% of population is below the age of 35 years. However, Jones Lang LaSalle accounts that by 2025, the seniors above 60 years of age will be 173 million in count. The senior housing is $25 billion industry worldwide and India stands to be comparatively younger than US and Japan. This implies the growth in this sector as the age graph for seniors is supposed to grow more than 100% in the next decade.
The target buyers from elder section of society are a mix of people from all walks of life. Specifically targeting them, developers are planning to cater the senior citizens with amenities, not delivered till date. Intricately designing these homes, the builders are providing from hooters to antiskid tiles for safety and security of elderlies. Thus, practices of construction and price mechanism in real estate are ordained to undergo a paradigm shift while catering the elder citizens. These schemes and projects aim the group of citizens with limited capital and no recurring source of income. Therefore, retirement housing will witness the builders taking special care for social security of citizens following gradation of western countries.
Location and specifications for such projects will be a critical tangent that would affect the investment prospects for builders. The target group of buyers will predominantly comprise of end-users. So, the developers have to strategize localizing these residential projects where land is cheaper yet the connectivity is seamless. Proximity to hospitals and recreational centers is exigent for comfortable habilitation of old people. Financing will also be tricky for this segment as the risk factor climbs up parallel to the growing age. However, collaboration between the developers and NBFCs is seen as one of the solutions where developers would play key role.
Looking at the demographic mix and forecast for next decade, real estate in India has a lot to cater and flourish. Realty sector is currently cashing upon growing incomes of working class. However, real estate would overcome speculative investments with retirement housing projects which will stabilize with bulk of end-users.