In the US for example, the seniors housing market showed recovery in the third quarter of 2011, even while overall construction activity continued to decline. Occupancy rates were higher at 88.1%. The third quarter data tells us that it is clear we have moved past the low end of the cycle of 2010. Year-over-year rent growth for seniors housing increased by1.6 percent. The nursing care occupancy rate remains stable at 88.3 percent.

In South Africa it is believed that the over-50 age group, making up to just short of 33% of South Africa's population, should increase to up to 40% by 2021. Currently a significant number of retirement villages have disproportionately long waiting lists – those for the more sought-after developments often extend to 15 or 20 years – and people with their ears to the ground are catching on that they need to take action at a much earlier age to ensure they acquire the retirement accommodation and lifestyle that they desire, rather than wait until it’s out of reach.

Although many of those aged 55 to 60 feel they are not yet ready to join a retirement community, an emerging trend that may further impact on the demand, is that South Africans are starting to move into retirement communities at a younger age while enjoying an active lifestyle.

In Kwazulu Natal there seems to be a growing demand for accommodation among retirees who are more concerned with being cared for than proximity to cities or airports. Many senior citizens have no family left in the country and need to ensure that their needs will be catered for by professionals. Taking the little retirement town of Howick as an example: it has excellent retirement facilities, with well-run villages with frail care, nursing and meals provided, a good hospital and medical facilities. On the other hand Pietermaritzburg and Hilton are short of stock as development costs are reported to have inhibited new developments in recent years due to the economic slowdown.

This brings us to SA’s first national retirement brand. Evergreen Lifestyle seems unaware of the economic downturn much of the world finds itself in. Created by host company Amdec, one of South Africa’s largest private property developers Evergreen seems here to stay.

Evergreen’s ongoing augmentation and impressive reputation for being able to read the market, works contrary to the recessionary market trends.  Evergreen’s vision for a national retirement lifestyle brand has been realized within three years of them putting plans on the table. The Evergreen footprint has expanded to include  ongoing development at Muizenberg Phase 2, Lake Michelle and Bergvliet – all in the Western Cape. Evergreen plans villages for Noordhoek as well as Serengeti.

A village at Broadacres has been successfully launched and will be a feather in Amdec’s Gauteng portfolio. 

Further financial security lies in the fact that homes within the Evergreen portfolio are offered on a Life Right basis, one of the most widely practiced and requested retirement purchase schemes worldwide. Life Rights offers the lowest purchase price relative to product. The fact that there is neither transfer duty nor tax payable is an attractive boon. An additional benefit of entering into a life right scheme is that accommodation costs remain fairly stable, especially if the development offers a fixed for life levy. 

So it’s a mixed bag on the senior citizen retirement accommodation front. The smart money is on the exclusive high-end Evergreen. Small developments around the country may still be able to have their hands in where not hampered by development costs.  Regardless, the on-going demand for retirement accommodation continues to rise and buck the recessionary trends.