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Not enough supply to match NRI demand for affluent senior housing in India

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Not enough supply to match NRI demand for affluent senior housing in India

When it comes to providing retirement or senior living homes, non-resident Indians feel that developers have failed to understand their needs. We examine what this segment of home buyers expect and the opportunity for developers

While Indian real estate developers are going all out to woo rich Indians and expat professionals, they seem to have gone completely off target, when it comes to understanding the long-term housing needs of non-resident Indians (NRIs). As a result, a very promising segment of housing that a vast majority of the Indians are looking for back home has not been addressed yet. According to a survey by Track2Realty, 88% of NRIs are ready to invest into senior housing. The senior housing that these expat Indians are looking for their post-retirement life is not just an apartment with healthcare and assisted living facilities. No less than 72% of the NRIs want senior living housing solutions in India that offer luxury.

NRIs expect luxury and comfort from senior housing projects

Among the NRIs looking for senior housing, 94% would not mind paying a premium for luxury, with many of them being aware of the fact that their children may work or staying abroad or in other cities. “I have worked hard throughout my career. Once I settle down in my retired life back home, I would like enjoy myself more, as time will not be a constraint. With reasonable savings for retirement, I would not like to live an isolated life. Developers need to understand that the world has changed, for seniors who have decent money,” points out Akshat Jakhar, an NRI from Ahmadabad, who feels that senior housing should provide social security and medical necessities, without compromising on luxury and lifestyle.

These are the findings of a first-of-its-kind comprehensive global online and offline survey by Track2Realty, a real estate think-tank group and its global alliance partners. NRIs from the US, UK, Middle East, South Africa, Canada, Australia, New Zealand, Malaysia, Singapore and Mauritius, participated in the survey. They were given a mix of open-ended and close-ended questions to assess their investment preferences in the Indian property market.

Why NRIs are unhappy with senior housing options in India

The survey also tried to assess why many of the existing and upcoming senior housing projects, have been unable to attract NRIs.

Nearly three-fourths of the NRIs (72%) felt that the problem is because developers have failed to create projects that are customized for affluent seniors. Most of the senior housing projects, are a mix for all kinds of senior citizens.

Location has also been one of the deterrents, for NRIs looking to invest in senior housing back home.

64% feel that developers make the mistake of assuming that senior housing should be low-cost housing and hence, in far-off locations. Nearly as many (60%) pointed out that if the location is not well-connected with the city, then, the developer may not be in a position to create all the necessary lifestyle options by himself. “I went to see a senior housing project in Hyderabad, on my last visit to India. It had the ambience of an old-age home, with modern amenities. If I wish to invite my friends there, they would not be able to commute. Similarly, for me, going to movies or other social events would not be possible. I cannot think of living in a secure, golden cage,” says Prakash N Karnik, an NRI from Muscat.

Reasons why NRIs want to settle in India

Nearly two-thirds (62%) maintained that they would like to settle in India after retirement, even if their children were being educated in foreign countries and planned to settle there. The main reasons for NRIs wanting to settle in India and looking for lifestyle-driven senior housing include:

Having a feeling of being in one’s hometown in old age (38%).

Poor quality of life abroad, despite affluence (36%).

Family reasons (26%).

A substantial portion of these NRIs are even okay with a serviced senior housing option that works on the leased rental model, for lifetime. 46% of the NRIs feel that if the developer is offering a serviced apartment and charging a high premium as leased rent, as against buying the apartment, it is a better business model for both parties.

NRIs’ views on senior housing in India

88% NRIs are ready to invest into senior housing.

72% NRIs want lifestyle-driven housing solutions for senior citizens in India.

94% NRIs looking for senior housing, would not mind paying a high premium.

72% NRIs feel that developers have failed to create projects that are customized for affluent seniors.

64% NRIs feel that developers make the mistake of assuming that senior housing should be low-cost housing and hence, in far-off locations.

62% NRIs are clear that they would like to settle in India after retirement.

Among the NRIs who wish to settle back in India, 38% want to do so for the feeling of being in their hometown in old age, 36% cite poor quality of life abroad despite the affluence, while 26% have family reasons.

46% NRIs would like to see serviced senior housing that works on the leased rental model.

Source: Housing.com

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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