The Centre has finally put in place fresh guidelines for retirement homes, a move which developers believe will bring discipline to a segment currently marred by poor services and lack of serious regulations.As per the new guidelines, issued on March 7, the sale of apartments in retirement homes by promoters shall be permitted only if the retirement home has been registered under RERA.
States and union territories should also now notify appropriate planning norms that include retirement homes and their requirements as a category. The new norms also require retirement homes to be included as a permissible building category under residential land use at suitable locations within cities and in respective Master or Zonal or Local Area Plans.
Developers can now build and manage these ‘retirement homes’ or engage a ‘service provider’ or ‘retirement home operator’ for their management. Developers reacted positively to the new guidelines, saying that this will bring standard practices in the sector. “It will not only standardise practices adopted in constructing these houses but also provide more amenities to senior citizens. Additional FSI for retirement housing will also encourage more developers in building such houses,” Ankur Dhawan, Chief Investment Officer, PropTiger said.
With the population of senior citizens projected to grow to 17.3 crore by 2025 and about 24 crore by 2050, many developers are banking on retirement homes as a potentially lucrative market.“In an era where most youngsters living abroad and leaving behind their old parents, retirement homes are a good option if they are managed well. With the latest guidelines, it is now assured that these homes will be managed well and monitored. We expect the market to pick up pace now like never before,” Harvinder Singh Sikka, MD, Sikka Group said. However, the sector is still a niche one with not much investment.
Old age homes under regulation
Sale of apartments in retirement homes by promoters shall be permitted only if it been registered under RERA
States and union territories should also now notify appropriate planning norms that include retirement homes as a category
Retirement homes to be included as a permissible building category under residential land use plans at suitable locations