Senior living projects: Assess developer track record in service delivery

As senior living projects expand rapidly, experts advise buyers to assess developers' track record, service quality, costs and long-term sustainability before investing

Developers of senior housing projects are scaling up operations and entering new cities in response to robust demand. Companies such as Ashiana Housing, Manasum Senior Living and Primus Senior Living, among others, are acquiring land parcels and expanding their footprint, according to a recent media report. Even DLF is entering the segment with a project in Gurgaon. A clear trend towards premiumisation is also emerging.

 

According to Colliers India, the Indian senior living market has the potential to expand from its current size of around $2-3 billion to around $12 billion by 2030.

 

Demand drivers 

A major demand driver is the growing share of the population aged 60 and above. “Rising life expectancy has increased the need for organised senior living facilities offering housing, medical support and wellness services,” says Vimal Nadar, national director, research, Colliers. 

“The steady shift from joint families to nuclear households has left many elderly individuals without immediate support,” says Anantharam V Varayur, co-founder, Manasum Senior Living. 

Migration of the younger generation to other cities and countries has increased the need for secure, professionally managed spaces for elderly family members. 

“Greater global exposure has made many Indians more receptive to the senior living models they have seen in developed markets,” says Rajagopal G, director and group CEO, Serene Communities by Columbia Pacific.  

Many seniors now proactively choose such communities that offer safety, age-similar companionship, specialised infrastructure and structured support, rather than depend entirely on family-based care. 

Rajagopal points out that the Covid-19 pandemic sharpened awareness of seniors’ safety. “It highlighted the risks of seniors living alone and increased the perceived value of health-focused community living,” says Akash Pharande, managing director, Pharande Spaces.

 

Growing premiumisation 

Changing expectations among today’s retirees are leading to the premiumisation of senior living. “Higher disposable incomes and a stronger focus on health and wellness are supporting demand for such offerings,” says Nadar. 

“Many seniors have sold their family homes after their children moved out and have accumulated enough savings to fund a comfortable retirement,” says Pharande. 

A significant number of these affluent seniors are also widely travelled, aspirational, quality-conscious, and increasingly willing to pay a premium for superior amenities, well-designed spaces, and access to quality healthcare and wellness services.

 

Relief from chores 

Senior living projects offer a safe and secure environment through round-the-clock security, controlled access, and emergency response mechanisms. They typically combine these features with healthcare support, emergency response facilities, and wellness services. They create a setting designed around the specific needs of seniors.  

Professionally managed facilities also offer a hassle-free lifestyle. “Residents benefit from a maintenance-free environment where housekeeping, dining and repairs are taken care of,” says Varayur. 

These projects are purpose-built for senior living, with age-friendly features such as wide corridors, non-slip flooring, grab rails and integrated health and wellness support systems.  

“Community spaces and organised programmes help mitigate loneliness,” says Anil Godara, founder and managing director, J Estates.  

These communities also offer assurance to the children that their parents are living in a safe, supportive and professionally managed environment.

 

High service and maintenance costs  

One drawback of such projects is the high monthly maintenance cost to cover the costs of  specialised staff and services. “These costs often escalate significantly over time,” says Abhishek Kumar, Sebi registered investment advisor and founder, SahajMoney.com. Residents may also face operational risk if the service provider changes or if the developer encounters financial distress. 

These properties also tend to offer lower capital appreciation as the resale market is limited to a specific age group. When children inherit such properties, they may be legally barred from residing in them if they do not meet the minimum age requirement. “Developers sometimes impose steep transfer fees or profit-sharing clauses, which can erode the eventual financial gains of heirs,” says Kumar.

 

Check developer’s track record 

Buyers should check for clarity of title, Rera registration and escalation clauses in the event of delays or deficiencies. All the necessary approvals should be in place. 

Buyers should also assess the developer’s track record in delivering real estate projects, construction quality, and timely completion. “They should evaluate specific competence in the delivery of service-oriented residential housing,” says Godara. 

“Buyers should also assess resale values and exit options, especially if they intend to transfer the property to legal heirs,” says Nadar. 

Is the operator seasoned? 

Sometimes, the day-to-day running of the operations is handled by a separate operator, and not the developer. Buyers should assess how capable the operator is of managing senior living communities effectively and delivering services consistently.  “Operational competence is as important as construction quality in evaluating a senior living project,” says Varayur.

Speaking to existing residents about their lived experience is often revealing on this count. 

Truly senior-friendly? 

Buyers should determine whether the design of the project is genuinely senior-friendly or superficially adapted. It should offer age-friendly design features. 

Commercial terms also need close scrutiny. Rajagopal suggests that buyers should review the services offered, and seek clarity on maintenance and recurring costs.  

“In assisted living facilities, buyers should examine the quality of services that are contractually committed,” says Nadar. 

The healthcare element deserves particular attention. It is advisable to confirm that the project has a long-term contract with a reputable healthcare service provider. 

Godara suggests that buyers should examine transparency in governance and the long-term sustainability of services. “They should also assess transparency in billing, and the record of fee increases in the developer’s other senior living projects,” says Kumar. 

The resale and inheritance clauses must be checked thoroughly.

 

Are you financially equipped?  

Before signing a sale deed or lease agreement, buyers should know exactly how much they have saved for retirement. “They should calculate how much they can afford to pay each month and account for higher-than-normal maintenance charges as well as food expenses,” says Pharande. 

“Buyers planning to use a home loan should verify their eligibility carefully, since banks place limits on borrowing tenure for senior citizens,” says Pharande. 

Buyers should also ensure they have adequate liquidity. These assets may not be easy to sell quickly in the event of an unforeseen medical emergency. “Ensure you maintain separate contingency funds and your entire net worth is not locked into a restricted-use property,” says Kumar.

 

Mistakes buyers must avoid 

•    Do not rely blindly on marketing claims or sales pitches; do independent research

•    Avoid impulse purchases or pressure-driven decisions

•    Test actual service quality, including food, housekeeping and medical response

•    Avoid locations isolated from multi-speciality hospitals or your social support systems

•    Scrutinise the legal fine print on security deposits in case of change in management

 

The writer is a Mumbai-based independent journalist