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More Price Appreciation, Higher Rentals in Senior Living Due to Demand-Supply Mismatch, says Ashiana Housing JMD

Senior Living is witnessing more price appreciation, higher rentals due to demand-supply mismatch, says Ashiana Housing Joint Managing Director Ankur Gupta. Speaking to Realty & More, Gupta said that the segment is growing exponentially. “We were doing around 150 units to 200 units before COVID and now it’s moved to about 400 to 450 units. And we’re really looking at expanding that market, bigger and bigger”, said Gupta. Speaking on the growth driver markets Gupta said demand from South India is very large, especially from markets like Bangalore and Chennai. This is followed by West India which is the Mumbai Pune market growing and lastly is the North India which is the Delhi market which will keep expanding, added Gupta. 

He pointed out the fact that during 2015 to 2018, when regular housing prices did not move up, senior living prices did go up and thus, in long term, as an asset class, senior living prices will grow better than regular housing.

Gupta further revealed that investors are coming into the senior living market, but these are investors who are long term who want to say that I want to put my unit on rent and maybe after 10 years I’ll move to the senior living. “So these are not investors who are saying I’ll buy today, hold on for the next 8, 9 years, maybe use it for myself or sell it at the time, depending on the need”, said Gupta.

The Ashiana Housing Joint MD disclosed that senior living fetches about 25 to 30% more rental than regular housing in a given market, as the supply of senior living is low and demand is higher and also since the services and product has a lot more facilities, people prefer being paid more rent. 

On the policy front, Gupta said that with the medical insurance, the government should talk about adding care services and assisted caregiving services as part of the insurance.

On reverse mortgage, Gupta said, “I think that product has come out for the last 20 years but it’s not being used heavily. And I think it’s because of lack of marketing and lack of clarity of, taxations on income tax, stamp duty”.