Comfort in retirement: How to invest in a house in senior living facility

Decision to purchase such a property should be taken by researching costs, infrastructure, service standards

The demand for senior citizen housing in India is rising rapidly. In 2014, only 7,147 such units were launched; by 2024, this number had reached 20,442 (year-to-date till September), according to JLL research.

 

Senior citizens now constitute 11 per cent of India’s population, or 156.7 million people, a figure expected to more than double to 346 million by 2050. This growth is expected to drive significant demand for senior housing, according to a report by the Association of Senior Living India (ASLI) and JLL.

 

Factors fuelling demand

 

Several factors are contributing to the rising interest in senior living facilities. “As India’s population ages, there’s a larger demographic that needs specialised housing options. Rising prosperity has enabled more individuals to afford these facilities,” says Ankur Gupta, co-founder, ASLI, and joint managing director, Ashiana Housing.

 

“The rapid pace of urbanisation and growth of nuclear families is also fuelling demand,” says Samantak Das, chief economist and head of research and REIS, India, JLL. 

 

Loneliness among the urban elderly is another driver. “Around 26.7 per cent of the elderly live alone, with only their spouses, or with other people who are not their spouse or children,” says Gupta.

 

The migration of children to other cities or abroad compounds the issue. “With many Indians moving abroad for work, their parents are left in India. Once they become older, they find it difficult to manage large houses and supervise the staff. Moving to a specialised senior living facility is a more convenient and cost-effective solution for them,” says Anantharam Varayur, co-founder, Manasum Homes Senior Living.

 

Demand is also growing among childless couples, bachelors and spinsters, widows, and those with only girl child.

 

Social attitudes are evolving, too. “The taboo associated with senior living is diminishing, increasing the acceptance of this concept among both children and the elderly,” says Das.

 

Housing plus services

 

Senior living facilities offer a house bundled with essential services. “The wife, for instance, does not need to cook till the age of 70 or 80, as food is supplied in these facilities,” says Varayur.

 

Residents get the benefit of service providers like housekeeping staff, electricians, plumbers, and enhanced security features like guards, CCTV cameras, and alarm systems.

 

Emotional well-being is supported through a sense of community. “Regular interactions with other residents reduce their sense of loneliness. Activities like yoga, religious gatherings, games, and communal celebrations of festivals, birthdays, and anniversaries help them stay engaged,” says Varayur.

 

Onsite medical facilities and emergency response systems are available. “Many of these facilities offer different layers of care — independent living, assisted living, and skilled nursing care — based on age and level of dependency,” says Das.

 

These homes are also designed for seniors with ramps, hand railings, and non-slippery floors. “Normal houses would have to be renovated and redesigned to include these facilities, which could prove costly,” says Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors. 

Financially, these facilities can sometimes be more economical than maintaining large independent homes. “Residents can more accurately estimate costs for different levels of care they might need with advancing age. Saving also happens as the need for a large staff gets eliminated due to access to shared services,” says Dhawan.

 

Potential drawbacks

 

While offering numerous advantages, these facilities have a few downsides. Relocating can disrupt existing social connections, and living away from city centres may reduce visits from family and friends. “Many facilities are located away from city centres, in suburbs, or in a different city, which can be a major change for those accustomed to urban living,” says Dhawan. Living in an age-restricted community could also limit exposure to people from diverse age groups.

 

Additionally, these facilities may at times be more expensive than general housing. “This could happen due to their specialised nature and limited availability,” says Dhawan.

 

Points to consider

 

Before buying, prospective buyers should evaluate the location and essential infrastructure. “Ensure the facility has good access to healthcare,” says Dhawan.

 

Seniors planning to purchase under-construction units should choose developers with a proven track record in senior housing. Visiting older projects to gather feedback on service and maintenance standards is advisable. Cost analysis is vital, including premiums for limited availability and ongoing maintenance expenses. Dhawan advises buying closer to when the need arises for better clarity on requirements. “Renting a unit for some time in such a facility could serve as a trial period and lead to a more informed decision,” he adds.