Senior housing must be rethought for an ageing population
In an interview with Real Asset Media, Caroline Gronack, managing director at Apleona Invest, highlights the growing demand for more suitable housing options for older generations.
“We all know that our population is getting older. So also in terms of real estate we have to adapt. We have to build the correct real estate to host these elderly people.”
Rather than focusing solely on care homes, Gronack highlights the importance of broader healthcare-related asset types. “It’s not only care homes, it’s also medical care, it’s medical office buildings, but it’s also senior housing,” she said. “Senior housing is something you move into much earlier than into a care home. And if you move into senior housing at the right time, you might never ever need to go to a care home.”
Location is also a key factor in making senior housing viable. “What is needed for good working senior housing is that the senior housing is in walking distance of all services which you would like to have as a senior citizen,” she said. “So to say some cafes, some supermarkets, a park to go and have a walk.”
While Germany’s major cities remain core targets, she argues that smaller markets also offer potential. “I think top seven cities are always good, but it’s not really necessary to be in the top seven cities,” she said. “It can be wherever you want. And a smaller city is very nice as well and it’s also more affordable.”
“This is a very good sector where we have to focus and where we should build,” she concluded. “And then of course us investors buy more assets, bring more assets to the market.”
