Financial barriers in senior living that need addressing

According to the United Nations Population Fund, India will be home to 17% of the total world’s senior citizens (60+ population around 2 Bn) by 2050, making it at the forefront of this global demographic transition. Another report by the Association of Senior Living India underscores the vulnerability of senior citizens to health challenges. These include chronic diseases, infections and cognitive decline, necessitating a nuanced approach not just to healthcare provision but also in amalgamating them in elderly-centric residential projects. Further, it also raised the need for tailored geriatric healthcare facilities and a proficient workforce capable of addressing the needs of senior citizens if not within the premises of residential projects, then at least in proximity.

Table of Contents

Senior citizens feel neglected and lack proper medical care

Children often migrate for higher education and career opportunities, leaving elderly ones alone. Ageing leads to a decline in strength, mobility, sensory perception, memory loss, reduced processing speed, and difficulty in learning new tasks that affect their daily functioning, leading to new challenges. They often lead a lonely and isolated life, further affecting their health. Mitigating these issues requires a focused approach that amalgamates comprehensive support systems, including healthcare, social services, policies and communities that promote inclusive living in single-gated residential premises.

Demand for housing units for senior citizens

Land acquisition is one of the main challenges. It increases the financial burden and the cost of housing projects. This challenge is further compounded by a lack of specialised facilities and maintenance services tailored to the needs of senior citisens.

Imbalance between demand and supply

One of the main challenges is the imbalance between demand and supply. While the need for senior housing is rapidly increasing, only a handful of developers are actively engaged in this segment. Further, the high unit prices of real estate for senior citizens, reportedly around 15-20%, coupled with faster sales rates of 25-30%, present both opportunities and barriers for developers in this market.

The unavailability of specialised facilities further complicates the situation. Many cities in India, such as Bangalore, Chennai, Pondicherry, Dehradun, Rishikesh, and Pune, boast favourable climate and atmosphere for seniors, yet the development of suitable housing options remains inadequate.

Financing is the main problem

Finance poses significant problems for real estate developers working in this segment. Goods and Services Tax (GST) on services, cash flow, and securing funding sources impact the feasibility of senior living projects. Unlike conventional residential developments, senior living projects often rely on back-end sales, leading to expensive financing and cash flow constraints.

Conclusion

These challenges can be addressed. However, they require comprehensive regulatory support and collaboration among stakeholders. Initiatives, such as promoting reverse mortgage norms and providing tax relief for seniors can improve the financial viability of senior living projects. Further, fostering collaboration between developers, government entities, and regulatory bodies is essential for overcoming barriers and ensuring the provision of dignified housing options for the rapidly growing elderly population in India.

(The author is co-founder of Manasum Senior Living Homes.)

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com

Was this article useful?

😃 (1)
😐 (0)
😔 (0)

Anantharam Varayur

Anantharam, a first-generation entrepreneur, embarked on his business journey in 1989 at the age of 23 as the co-founder of Webcom Information Technology. While his business focused on computer networking, his true passion lies in human networking. Anantharam served as the executive director of BNI Bangalore, guiding over 20,000+ entrepreneurs in Bangalore and across the country over a 15-year tenure, helping them systematically grow their businesses.
Expanding his entrepreneurial ventures, Anantharam ventured into two additional businesses. Firstly, Manasum Retirement Homes, a project dedicated to creating luxury retirement homes for senior citizens with a vision to care for 2,500+ seniors in the next five years and the second Atiyas Mobility, a chain of 100% electric two-wheeler showrooms across Karnataka. Beyond his business ventures, Anantharam is a marathon runner and mountaineer.