Mohamed Bin Ali Alabbar, chairman of Dubai-based real estate major Emaar, finds India as one of the most attractive markets and would continue to invest in the country through its joint venture company Emaar MGF.
Emaar, which is a listed company with 68% public holding and the rest with the Dubai government, has invested around $1 billion in India so far. Alabbar said that the continued growth even during the period when the global economy was facing one of the worst financial turmoils proves the strength of the Indian economy.
Besides United Arab Emirates, Emaar is operating in 16 countries including US, UK, France In Canada. Its JV company Emaar MGF is presently planning to tap the capital market in India. Alabbar said that the exercise is mainly aimed at listing the company on Indian stock exchanges, which will bring in more transparency in the company's operations and thereby help in instilling confidence among the various stakeholders including customers in the company.
Talking about the financial crisis, he hoped that it is now over and things will improve. The recently reported financial crisis of Dubai World is manageable and will be contained, he said. "All sectors of the country are performing well," he said.
Talking about India, he said he was pleasantly surprised as the country has returned to high growth radar. He said that Emaar MGF is doing exceptionally well. In fact, he is so confident that he refused to change the company's strategy to delve into the affordable housing segment as most of other real estate companies in the country followed to beat the slowdown in the sector.
"In order to protect its brand, Emaar MGF will continue to build houses for middle and upper-middle segments," he said. He said that his group brings in certain quality and specification with its brand, which is not possible in the pure affordable segment. However, he added that it will provide value for money to its customers.
Even during the slowdown period, he said that his company ensured that no project is delayed. In India, he said that all the projects are on schedule. Despite problems and slowdown, the company is ready to deliver all the 1168 apartments of the Commonwealth Games village. He said all the works have been completed and the delivery is being given to the authority.
Monday, May 3, 2010
Senior citizens' homes emerging as a serious segment of real estate
PUNE: Indian real estate scene is witnessing the emergence of senior citizens' homes as a new market segment as the number of projects and housing stock directed at this section of population is rising fast, a report by real estate advisory firm Jones Lang LaSalle Meghraj (JLLM) has said.
The observation is highlighted in a report Senior housing sector in India: Key Trends,' which JLLM released on Friday. "The status of seniors in Indian market is experiencing a sea-change, owing to their growing cohort size, augmented financial independence and change in mindset. They are no longer considered withdrawn, risk averse and financially dependent. The immense potential of this segment, with its unique needs and promises, offers an array of opportunities to the Indian real estate market," the report said.
Saumyajit Roy, associate vice-president (senior living) at Jones Lang LaSalle Meghraj, told TOI, "Five years ago, there were only about 3 to 4 developers focusing on senior living sector to any degree. Moreover, their focus was diffused and their approach was not as well-researched and need-based, as it is today. In the current context, there are around 14 developers actively exploring this segment."
In India, more than 60 per cent of households are nuclear and 8.94 per cent of the population is aged 60-plus, indicating that the aged are in greater need of support than ever.
According to real estate market sources, the number of housing units being built specifically for seniors has increased four to five fold and the segment is on a growth path. "We estimate the number of units in this segment at about 4,000 now, but the way the segment is growing we expect this number to jump to over 20,000 in three years," said the chief executive officer of a Mumbai-based real estate consultancy firm who did not want to be named.
The report pointed out that while opportunities exist, it is important to comprehend the ecosystem in which seniors exist in India. It is imperative that real estate developers understand and acknowledge the unique requirements of the elderly while catering to the sector. The aged population faces numerous issues, typical of the sunset years of their lives.
"A growing sense of insecurity, craving for companionship, fear of getting obsolete and loss of relevance within the family, increasing physical disability, difficulty to access transport, a need for quality healthcare and geriatric care, complexity in conducting the daily chores of family life are some of the several issues that the aged face today. These, compounded by poor access to government and other support systems, insurance and legal assistance, immobilise them. These nuances of old age need to be thoroughly recognised by the developers," the report has elaborated.
The report underlines that there are rising numbers of seniors who are adapting to the idea of senior living' spending the sunset years of their lives with similar-aged companions and sharing facilities in settings of enablement and security. The report also points out to a recent survey of households with senior citizens which revealed that over 60 per cent found the concept of a senior citizen's club or a senior citizen's association as a viable and practical one. Contemporary retirement homes or resorts have replaced the earlier concept of old age homes, which symbolised the last option for needy and abandoned elderly, it said.
City-based Paranjape Schemes Construction Limited has pioneered the concept in the city with their project Atha Shree (the beginning), which has thus far completed three such projects and has set its sight on other cities and countries to develop retirement villages.'
Another realty firm, Ashiana Housing Limited, is constructing the Rs 200 crore Utsav Lavasa in Lavasa City near Pune. The project will comprise 475 retirement housing units comprising of villas and multiple choices apartments. Manoj Tyagi, vice-president, Ashiana housing, said there is a growing acceptance among discerning Indian senior citizens about retirement homes. He said the residents of the retirement resort will be able to maintain the active, healthy lifestyle that they have grown accustomed to, but with more luxuries like hobby clubs, activity rooms, swimming pool or health club.
The observation is highlighted in a report Senior housing sector in India: Key Trends,' which JLLM released on Friday. "The status of seniors in Indian market is experiencing a sea-change, owing to their growing cohort size, augmented financial independence and change in mindset. They are no longer considered withdrawn, risk averse and financially dependent. The immense potential of this segment, with its unique needs and promises, offers an array of opportunities to the Indian real estate market," the report said.
Saumyajit Roy, associate vice-president (senior living) at Jones Lang LaSalle Meghraj, told TOI, "Five years ago, there were only about 3 to 4 developers focusing on senior living sector to any degree. Moreover, their focus was diffused and their approach was not as well-researched and need-based, as it is today. In the current context, there are around 14 developers actively exploring this segment."
In India, more than 60 per cent of households are nuclear and 8.94 per cent of the population is aged 60-plus, indicating that the aged are in greater need of support than ever.
According to real estate market sources, the number of housing units being built specifically for seniors has increased four to five fold and the segment is on a growth path. "We estimate the number of units in this segment at about 4,000 now, but the way the segment is growing we expect this number to jump to over 20,000 in three years," said the chief executive officer of a Mumbai-based real estate consultancy firm who did not want to be named.
The report pointed out that while opportunities exist, it is important to comprehend the ecosystem in which seniors exist in India. It is imperative that real estate developers understand and acknowledge the unique requirements of the elderly while catering to the sector. The aged population faces numerous issues, typical of the sunset years of their lives.
"A growing sense of insecurity, craving for companionship, fear of getting obsolete and loss of relevance within the family, increasing physical disability, difficulty to access transport, a need for quality healthcare and geriatric care, complexity in conducting the daily chores of family life are some of the several issues that the aged face today. These, compounded by poor access to government and other support systems, insurance and legal assistance, immobilise them. These nuances of old age need to be thoroughly recognised by the developers," the report has elaborated.
The report underlines that there are rising numbers of seniors who are adapting to the idea of senior living' spending the sunset years of their lives with similar-aged companions and sharing facilities in settings of enablement and security. The report also points out to a recent survey of households with senior citizens which revealed that over 60 per cent found the concept of a senior citizen's club or a senior citizen's association as a viable and practical one. Contemporary retirement homes or resorts have replaced the earlier concept of old age homes, which symbolised the last option for needy and abandoned elderly, it said.
City-based Paranjape Schemes Construction Limited has pioneered the concept in the city with their project Atha Shree (the beginning), which has thus far completed three such projects and has set its sight on other cities and countries to develop retirement villages.'
Another realty firm, Ashiana Housing Limited, is constructing the Rs 200 crore Utsav Lavasa in Lavasa City near Pune. The project will comprise 475 retirement housing units comprising of villas and multiple choices apartments. Manoj Tyagi, vice-president, Ashiana housing, said there is a growing acceptance among discerning Indian senior citizens about retirement homes. He said the residents of the retirement resort will be able to maintain the active, healthy lifestyle that they have grown accustomed to, but with more luxuries like hobby clubs, activity rooms, swimming pool or health club.
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