There has been a growing market for retirement homes in India in recent years. With an increasing number of older adults living independently, this trend is likely to continue.
According to a recent Associated Press story, these new retirement communities are so far available only for the affluent.
The buy-in prices of $75,000 to $125,000 rule out the vast majority of the population, although with the economy growing every year, developers are betting the market will increase.A PBS Nightly Business Report story from 2006 described the expenses for people renting at these facilities.
Living in retirement homes doesn't come cheap. Each resident pays a fee of up to $450 U.S. per month, a princely sum in a country where the average worker earns $120 U.S. a month. But there is no denying the demand. The Indian government has yet to work out a plan to deal with the country`s aging citizens, but the private sector has recognized the growing demand for retirement homes.An article from India Abroad explains the contractual agreement for purchasing retirement homes.
You can either buy a house outright or pay a deposit and a rent for the rest of your life. The deposit will revert to your children as part of your estate.Many of these places cater to retirees whose children live outside India. In recent years, I have known several older Indian immigrants from the US and UK who purchased villas and apartments in India. Some of them have already transferred their residence to India, and some others treat these much like vacation homes, with yearly trips for extended stays in India. According to the India Abroad article, this is indeed the intended target for builders of retirement homes.
But, if you choose to buy a house, then it cannot revert to your children, as most of these colonies don't accept people under 55 years of age. Nor is anyone allowed to buy a house as an investment. However, [some] builders offer a buyback scheme for these homes after the demise of the resident couple. This is part of the original sale agreement with a built-in price escalation.
Developers are also looking at a big non-resident Indian retirement market and building homes for the high-income couples working abroad in the US, Canada, Europe and even the Middle East who will retire in the next 3 to 5 years.
[This] is a big opportunity. There are couples working abroad who would want to spend 3 to 6 months in a year in India. Retirement homes could target them as well.
Links to some prominent retirement communities and developers in India: