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Senior housing segment within the real estate sector which has long struggled to gain mainstream acceptance is now gradually becoming more viable, presenting an opportunity for comapnies, according to a report by GRI Club.
"Senior housing is another niche segment that has long struggled to gain mainstream acceptance but is now gradually becoming more viable," the GRI club said, which connects real estate leaders across the globe. The report says that urbanisation is changing India's cultural emphasis on multigenerational living which limits the demand for dedicated senior communities. However, the report highlights that the operational intensity and long-term service management requirements make it a difficult segment for developers to scale effectively. The report says that the real estate developers are now integrating senior living components into larger mixed-use developments, where independent senior residences are co-located with healthcare facilities, recreational amenities, and family housing, creating a more attractive and sustainable model. Going further, the report highlights the opportunity in the co-living segment, adding that rowing demand for co-living and rental housing, particularly among young professionals in urban centres, has been a key trend shaping the market. "Although the sector initially gained traction between 2017 and 2019 before facing disruptions during the COVID-19 pandemic, rising workforce mobility and affordability challenges are onceagain driving interest in flexible living solutions," the report added. As per the report, the co-living model in the country is still underdeveloped, with investors looks cautious about the low yields, operational complexities and market fragmentation. "While demand is evident, institutional players remain hesitant to commit at scale due to property management challenges anduncertain long-term returns," the report added. The report pointed out that the branded residences, particularly those linked to global hospitality groups, are also emerging as a prestige-driven housing segment, combining hotel-like amenities, concierge services, and the reputations of renowned luxury brands to attract HNWIs seeking exclusivity, convenience, and a service-oriented living experience. (ANI)
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