Estate Living Magazine Retirement Living - Issue 40 April 2019 | Page 42

d e v e l O p m e n t
P R O P E R T Y
&
&
I N V E S T M E N T
I N V E S T M E N T
The Rest Nature Estate
BUILDING
RETIREMENT
COMMUNITIES
HOW CAN SANTAM WORK
WITH DEVELOPERS?
People aren’t retiring like they used to. Instead,
many are working longer out of necessity or from
a desire to remain vital and engaged. This sense
of purpose, combined with advances in medical
science, means that we are living longer. According
to Statistics SA’s mid-2018 report, those aged 60
and over make up 8.5% of the population. This
means there’s a growing gap in the ‘mature’ housing
market, with demand for quality accommodation
among the growing numbers of middle to upper-
income retirees swiftly outstripping supply. As a
result, developers, investors, and even JSE-listed
companies are appearing to show more interest in
the retirement properties market.
Retirement living developers need to understand these shifts and
continuously adjust their products and services. There are several
hurdles and challenges in the long process to bring specialised
developments like retirement villages to successful completion.
That is why developers typically have to take out different insurance
policies to cover construction work, project liabilities and, once
buyers or tenants move in, the structures themselves. Not too long
ago, this meant that developers needed different policies from
different insurers. This may have led to confusion or frustration when
it was time to claim.
Real Estate Scheme Development Insurance
Santam’s Real Estate Scheme Development Insurance product
covers the risks during the building process, as well as in the period
between completion and the time when the scheme is registered
and occupation is allowed, so there needs to be a guarantee of a
seamless transition. The insurance company needs to be part of the
process from the beginning, including site visits, progress reports,