LIC Housing Finance Expands Senior Living Footprint Across India
LIC Housing Finance is strategically expanding its presence in the senior living sector, driven by increasing demand from senior citizens. With the ambition of venturing deeper into multiple cities, this fourth-largest mortgage lender intends to make its care home business a publicly traded entity as early as 2014.
CEO's Vision for a Listed Entity
“We expect to make the care homes business a fully listed body in coming three to five years,” stated the CEO of LIC Housing Finance.
Focus on Senior-Friendly Cities and Land Acquisition
Backed by the nation’s largest insurer, LIC of India, LIC Housing Finance is targeting a presence in up to seven cities known for their senior-friendly environments and opportunities to secure land at favorable rates. The company recently added a 98-unit project in Bangalore and a larger, 200-unit project in Bhubaneswar to its portfolio.
Currently, the organization is actively pursuing land acquisitions in Jaipur, Haridwar, and Goa. They are also exploring expansion into cities with strong appeal for retirees, such as Nagpur and Pune. “More cities such as Nagpur and Pune which have historically been friendly to the retired people will be looked at.”
Tapping into India's Demographic Shift
With 65% of India's population falling within the 15 to 64 age bracket, the retirement home business model holds significant potential. These community-style developments often feature modern amenities, such as gymnasiums, clubhouses, music rooms, and auditoriums. Additionally, these projects frequently offer domestic help services provided through either the developers or homeowners themselves.
Completed Projects and Future Expansion
Two inaugural projects, one situated in Bangalore and the other in Bhubaneswar, mark LIC Housing Finance’s solid foray into this market. These developments underpin what the CEO calls a “futuristic idea.” The company envisions scaling up operations significantly within the next three to five years.