The nursing and care home component of European investment volumes in 2020 and Q1 2021 exceeded that targeting senior living assets for the first time in five years says Colliers in its European Healthcare – A Growth Market report.
However, demand for increased senior housing options will drive higher investment market share for these assets longer term, the firm said.
The report, which surveyed eight European countries, said the 65+ population accounts for 25% of national populations in these countries, and will collectively increase by 21.7 million between 2020 and 2035 creating a significant market force.
“The proven long-term positive risk-reward balance of the senior living and healthcare sector in more mature markets such as the UK, alongside the significant growth in demand for assets and care services created by an aging population is attracting greater diversity of capital to this sector,” said Colliers head of EMEA research Damian Harrington.
“The expansion of the 65+ population to 25% of our population by 2035 is multiplied by high levels of wealth, creating demand for more senior living options.”
Colliers’ recent Global Investor Survey noted that 21% of respondents expressed an interest in investing in senior living assets in 2021. So far in 2021, investment volumes into the sector have expanded from a five-year average of 2.3% to 3.8%.