Retirement homes as a property investment
Over the past 15 years, the volume of investment in nonconventional commercial property types in Europe has grown annually by 25% on average. Among such types of assets are care homes, which are a good option to diversify portfolios and receive a stable income for several decades. In this market, the competition is not as strong as the once or retail property markets, but more and more investors deem it promising, largely due to global demographic changes.
Population ageing is a global trend, characterising most developed countries. According to UN estimates, the world percentage of seniors over 60-years-old is 13%, and it will grow to 25% by 2050 (except for Africa).
Most seniors live in Europe, constituting a quarter of the region’s population even today. The number of people over 80 will triple from 137 million in 2017 to 425 million in 2050, reaching 909 million by 2100. Retirement homes are properties which may well benefit most as a result of such demographic changes.