MIPIM: ‘Senior housing and healthcare in the mainstream’
Senior living and healthcare real estate used to be regarded as an alternative investment but has shifted into the mainstream, according to SHHA chair Ron can Bloois.
“I think it’s really a turning point in 2023,” he said. He said that the changing status of healthcare assets is mainly driven by ESG.
“Investors are searching for impact and of course on social impact these asset classes are outperforming,” he said. “Aging demographics are still booming.”
The markets are challenging at the moment because of pressure on yields and members have previously commented that a new pricing equilibrium is needed.
“It takes maybe two quarters to have a bit of a shift where we have a new mindset about yield expectations and also rental levels.”
The bulk of the appetite for healthcare assets is in Germany, Netherlands and the UK but there is increasing appetite in the Nordics and emerging markets such as Poland are still relevant, he said.
The SHHA has signed three strategic partnerships with fellow associations Arco, EPRA and Co-living Ventures. “These are fully aligned with our purpose,” van Bloois said.
“One of the goals of SHHA is to share thought leadership and to clarify definitions, because there’s still misunderstanding, especially about concepts of senior living.”
However, the association is also about sharing knowledge on the operational side of the business because the asset class is propco and opco driven.
“We just started with educating the value chain about our asset class and that’s a continuous focus,” said van Bloois. “Of course, we are very realistic because there’s still a war, there are geographical difficulties and also economic challenges. However, I think our asset class is resilient and is very future proof, so I’m very positive.”
Please click on the video above to watch the full interview or listen to the podcast below.