Retirement homes get regulatory push: What buyers and senior citizens should know

Retirement homes are set to come under greater regulatory scrutiny as the Centre pushes states and Union territories to adopt guidelines aimed at making senior living projects safer, more accessible and professionally managed.The guidelines, originally issued by the ministry of housing and urban affairs in March 2019, provide a framework for States and UTs to develop their own policies and regulations.The Centre's latest move was highlighted in a written reply by minister of state for social justice and empowerment BL Verma in the Rajya Sabha on July 24, 2026. Land and colonisation are State subjects, making state-level implementation important.For the real estate sector, a key provision is that retirement homes are covered under the Real Estate (Regulation and Development) Act, 2016, or RERA. The guidelines state that retirement-home apartments can be sold only after registration with the relevant state or Union Territory real estate regulatory authority. They also provide for a tripartite agreement involving the developer, service provider or retirement-home operator, and the allottee.The framework seeks to make these projects different from conventional housing by incorporating senior-friendly infrastructure. This includes wheelchair-accessible ramps and lifts, barrier-free movement, handrails, anti-skid surfaces, power backup and uninterrupted water and electricity supply. It also envisages ambulance services, emergency arrangements, medical facilities and tie-ups with nearby hospitals.The guidelines also provide for an Interest Free Maintenance Security deposit, or IFMS, which is refundable to the allottee subject to the prescribed conditions, with the maximum refund period specified as three months from the date of the refund application. Maintenance charges can be collected through lump-sum or periodic payments.For buyers, the guidelines mean that the apartment price is only one part of the decision. They should check the project's RERA registration, ownership or occupancy model, maintenance and service charges, refund terms, operator credentials and the actual availability of healthcare and emergency services.For developers, the framework provides a more defined structure for a specialised real estate segment expected to see rising demand as India's elderly population grows. The MoHUA guidelines aim to improve transparency and accountability while protecting the rights and specific needs of senior citizens living in retirement homes.The Centre's latest move therefore does not create a new nationwide retirement-home law, but strengthens the policy framework available to States and UTs for regulating this emerging segment of the housing market.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.