Govt should provide easy land & finance availability for senior housing: Report by PHD Chamber
Industry body PHD Chamber has released a report which has urged that the government should provide easy land availability and finance options to private real estate developers and offer incentives to boost the senior housing sector in India.
The body has urged the Centre to establish a regulatory body for senior housing to invite genuine stakeholders to participate and promote fair plays in the market. In a report published today, PHD Chamber has also called for a single window mechanism for real estate developers planning to develop senior housing.
Rajeev Talwar, vice president, PHD Chamber and chief executive officer, DLF, feels motivation to real estate developers is required with lucrative framework and investment opportunities for promoting large scale participation in the senior housing sector by them in the coming times. “Easy availability of land and finance options by the banks, tax incentives and subsidies would provide much needed fillip to this sector,” he said.
The average price range of senior housing projects varies across India with 1-BHK ranging between Rs 25-40 lakh, 2-BHK in the price range of Rs 40-80 lakh and 3-BHK in the range of Rs 80- 150 lakh. The report highlighted the need to rationalise home prices for senior citizens.
Size of the senior housing sector is estimated to reach around $7.7 billion by 2030, from $1.26 billion in 2016 due to conducive framework in the country, according to the report. Around 30% of the developers have been operating senior housing projects in India for about 2-5 years, 25% for around 1-2 and 5-7 years each and only 20% for more than 7 years.
Top five cities which are expected to emerge as a retirement friendly destinations are Bengaluru, Hyderabad, Mumbai, National Capital Region (NCR) and Chandigarh.
Around 60% of the developers offer complete sale model, 30% offer only lease deposit model and only 10% of the developers offer pure rent model, according to the report. The key challenges for the senior housings sector in India are lack of availability of skilled manpower, lack of affordability, social stigma, lack of awareness and high cost of marketing. The report estimates the share of elderly population in India’s total population is set to reach to 10.7% in 2021, 12.4% in 2026 and 23.6% in 2050, from 8.6% in 2011 and 5.6% in 1961.