Today’s retirees are reinventing the concept of the ‘golden years’. Picture: Alena Darmel/Pexels
The current generation of golden oldies is turning the old-fashion concept of retirement living on its head as they seek modern and energetic lifestyles that rival their younger countrymen and women.
They want to work out; they want to socialise; and they want to go shopping.
They also want it all within easy and convenient access.
This demographic has so much sway in the property market that developers are bowing to their needs. And good for them.
“Security, medical care, and a variety of facilities such as clubhouses, games rooms, restaurants, swimming pools, and gyms are at the top of the list,” says Rabie director Miguel Rodrigues.
“The estates geared towards a younger, more active and engaged community are gaining popularity, and are changing the ‘old-age home’ connotation to a ‘retirement village’.”
No, today’s retirees don’t live in ‘old-age homes’, they live in secure gated communities made up of like-minded people of the same age.
“The majority of retirees typically want to be near their friends and families, and still frequent the same shops, restaurants and clubs where they have social circles or communities,” he adds.
Such secure retirement states are in great need in central areas, but, unfortunately, it is not always easy for retirees to find such villages in the areas they reside. This, therefore, creates demand for new developments to be constructed in many suburban areas.
Speaking to the Cape Town market where Rabie develops, Rodrigues notes that there is demand for different types of retirement products across the various income brackets. Thankfully, there is a “continuous increase” of retirement developments and developers in the market.
“Several developers have realised that there is a great demand for retirement real estate and some also want to diversify their residential portfolio.”
In addition to active lifestyle and community offerings, Brad Winstanley, portfolio manager for Devmco Group, says retirees want homes that have well thought-out architectural designs – ideally without steps, that incorporate open-plan living and are constructed with materials that require low maintenance.
“Buyers are also looking for pet-friendly facilities and prefer free-standing units as opposed to apartment schemes. Schemes that can facilitate primary medical care and in-home care are well received.”
State-of-the-art security is a pre-requisite in the current market, he adds.
“The entire retirement model has changed. This is a broad and dynamic market with entrants as young as 50 looking for the ability to lock-up and go if they are travelling, but also being able to continue working, should it be required.
“The traditional ‘old-age-home’ is a very select niche of the market. We also see this segment of the market attract investors looking for a return in the short to medium term, with the option to use the facility later in life.”
With the increase in life expectancy and semigration, as well as changes in lifestyle, Winstanley says an array of new developments have been launched to capitalise on this market.
“Developments which cater for a modern retiree, incorporating modern architectural design, a broad array of amenities, health-care facilities, and in well-located secure estates, continue to grow in popularity.”
In fact, the demand for both existing and new retirement units is always higher than the supply, says Dejane Steyl, head of marketing at Devmark Property Group.
“Preparing for your retirement at an early stage in your life is very important and investing in retirement property will always give good returns due to the fact that the demand surpasses the supply.”
Such properties that offer alternative energy sources and operate with home-based care instead of traditional frail care centres, are most popular.
Generally, across the real estate industry, Bathobile Chime, client solutions director at Cushman & Wakefield: BROLL, says there is a move towards viewing property as a bundle of services rather than just a physical brick-and-mortar product, and the senior living sector is a “great” example of this shift in focus.
“Senior living follows the same principles as what we are seeing with the rise in co-living and student accommodation offerings, but with more of an additional focus on assistance and healthcare services as part of the overall package experience.
“As part of the growing interest in alternative real estate sectors – as investors seek to augment their portfolios and balance out exposure to traditional ‘core’ real estate sectors – we expect to see a growing and sustained interest in sectors such as senior living.”
Citing research from its global partner Cushman & Wakefield, she says senior living boasts encouraging operating fundamentals and is expected to deliver “superior rental growth relative to other types of real estate”.
“Demographic tailwinds will provide tangible leasing benefits and will ultimately underpin the strategic importance of senior living as an asset class.”