Tata to put Rs 1,200 crore in houses for the old
Aiming to capture 25 per cent share in the senior living segment, Tata Housing plans to invest Rs 1,200 crore by 2018 for setting up 13 such projects across the country.
Tata Housing, a subsidiary of Tata Sons, has already launched its first project, Riva Residences, in Bangalore and will now expand in the national capital region (NCR), Ahmedabad, Chennai, Mumbai, Kolkata and Pune. “Homes for senior citizens will be a very good and viable market for real estate developers,” Tata Housing Managing Director and Chief Executive Officer Brotin Banerjee said on Monday.
There are 98 million people over 55 with a steady growth of 3.5 per cent per annum. According to the United Nations data, India would have 118 million people over the age of 60 years by 2017. Banerjee said the company received good response for its first senior living project in Bangalore.
The Riva Residences brand will be part of ongoing as well as future townships. About 1,500-2,000 units of retirement homes will come up in the 13 projects. The market size of retirement homes is expected to be pegged at Rs 4,000 crore by 2018.
The company has tied up with Apollo Tele Health for offering medical services. Also, Tata Capital, Central Bank and Axis bank have been roped in for providing loans to potential customers. People aged 55-70 can avail of loans from these banks. For these loans, co-borrowers weren’t required, Banerjee added.
After venturing into Maldives, the company is exploring other markets, too. It has entered into an agreement with the Sri Lankan government for building a residential project in that country.
Banerjee said through the last six years, Tata Housing had grown at a compounded annual rate of 75-80 per cent.