Estimated reading time 6 to 7 minutes –
In our previous exploration, we embarked on a journey through the driving forces shaping the future of luxury senior living in India. Today, our focus pivots to the intricate challenges that cast shadows on this burgeoning sector, creating a nuanced tapestry of restraint and resilience.
Restraint 1: Social Perception – Transforming Stigma to Aspiration
The Challenge: Social Stigma around Senior Living
The prevailing social stigma surrounding senior living in India poses a formidable challenge. To achieve broader acceptance, there’s a pressing need to redefine the narrative. This calls for transformative initiatives, and one promising avenue lies in the hands of professional corporate groups. By shifting the focus to service-oriented senior housing rather than merely real estate, we can unravel the stigma, turning it into a compelling aspiration.
Restraint 2: Affordability Challenges – Balancing Independence with Costs
The Hurdle: Affordability as a Major Barrier
Affordability emerges as a towering hurdle for senior living in India. While seniors aspire for independence in well-equipped communities, high operational costs often render these environments less appealing due to constrained post-retirement funds. As a stark example, luxury senior living properties in cities can carry hefty price tags ranging from US$ 0.2 to 1 million (INR 2 to 8 Cr), emphasizing the financial strain on potential residents.
Restraint 3: GST Impact – Navigating Taxation Unevenness
Impact of GST on Retirement Communities
The lack of a distinct categorization for retirement communities subjects them to GST rates from the Services and Hospitality sector. Seniors bear the brunt of an 18% GST on maintenance, while catering GST fluctuates from 5% to 12% based on company turnover. This inconsistency raises questions, especially considering that seniors end up paying more without any direct correlation to their needs or choices.
Restraint 4: Regulatory Framework – Navigating Ambiguity and Risk
Government Support and Regulatory Ambiguity
The absence of substantial government support and clear policies adds another layer of challenge. Without proper incentives, the private sector’s engagement, particularly from real estate developers, remains limited. A study by HDFC Bank underscores the urgency, highlighting the lack of clear regulations for retirement homes, leaving residents vulnerable to potential exploitation. The cumbersome civil case remains their only recourse.
A Glimpse into Tomorrow: Trends on the Horizon
As we navigate these challenges, our journey doesn’t end here. In our upcoming exploration, we’ll cast a spotlight on the evolving trends within the senior living sector in India. Join us as we unravel the promising innovations and shifts that are shaping the future of luxury senior living. Stay tuned for insights that pave the way for a resilient and thriving industry.