Retirement homes offer tremendous opportunity and scope for real estate business to take professional care for the elderly citizens who are now left to fend for themselves!
The house of Tatas is known for their charitable disposition. And, when during the press conference in Delhi, Brotin Banerjee, managing director and chief executive of Tata Housing stated that they plan to invest Rs1,200 crore for developing 13 housing projects for senior citizens, as retirement homes, in the next five years, it came as a pleasant surprise to one and all.
It appears that Tata Housing retirement home plan covers cities like Ahmedabad, Bangalore, Chennai, Delhi, Kolkata, Mumbai and Pune. Full details are expected in due course. Their first project, under this scheme, is already under way in Bengaluru, basic details of which were made public, sometimes in May last year.
According to information available, there are 98 million people in India who are above 60 years of age and this is likely to reach a staggering 200 million by 2030! In line with the general Indian heritage and traditional family habits, a large number of them may continue to be living with their children, particularly the males (sons) who look after the ageing parents. Now the trend is changing, with the lifestyle of children needing "space" to live their "own way of lives" instead of being tied down to age-old systems! On the top of this, a very large number of Indians now live abroad, estimated to be around 30 million or thereabouts, and do continue to "support" their parents with financial remittances, several overseas restrictions (like residence visa in many countries) obliges them to keep their parents back in India!
In fact, old peoples' homes have been in operation for some time in the country, and not many can compared anywhere to be near traditional homes that can take loving care of ageing parents. This is an area which offers tremendous opportunity and scope for real estate business who can take professional care for the elderly citizens who are now left to fend for themselves!
When Tata Housing announced the Riva Residence in Bengaluru as a retirement home for the seniors above the age of 55 years, the response was said to be overwhelming with more than 4,000 enquiries from all over the country! After a study, Tata Housing, it appears, is planning to set up 2,000 such retire homes, involving 13 projects, to be completed by 2018, at an estimated cost of Rs1,000 crore to Rs1,200 crore. Its own estimate is that the retirement homes would be worth about Rs4,000 crore, and, their own initial target to achieve will be in the vicinity of 15%.
Full details of Riva Residences would be available for the reader to access at www.tatahousing.in/riva. This project, according to the available information, is planned to cover 187 units in a 4.5 acre area with the projected cost of Rs70 crore. One bedroom flat of 800 square feet (costs Rs45 lakh) and a 2 bedroom flat (at Rs65 lakh) covering 1,200 square feet. Riva residences are located off Tumkur road and offer wellness, comfort, safety, security and include gym and recreational facilities with a 10,000 sq feet club house, apart from a well set up kitchen to cater to the needs of the residents. Additionally, Apollo Health services have been tied up to take care of the residents needs. It appears that Tata Capital, Central Bank and Axis Bank will also provide loan facilities to potential customers for the above project.
Moneylife has carried extensive coverage on retirement homes, in the magazine issue dated 26 January 2012. Almost every major city and town can claim to have old people's home in various manner and forms. Those who need such facilities would do well not only consult a few known friends in the concerned city/town, but also actually visit, stay for a few days, paying the charges demanded, to be absolutely sure that the chosen centre would meet their needs. After all, once financial commitments are made, it would quite difficult to cancel such agreements.
In any case, one of the main reasons why we took up this issue is present the full, available facts to our readers, but at the same time, look at this announcement as the forerunner of many retirement homes to come up from corporate houses.
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)
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