The huge demand and supply imbalance affecting almost all ‘living’ asset classes is particularly acute for senior living and healthcare, Richard Valentine-Selsey, head of European living research and consultancy at Savills.
“We have very much an ageing population in Europe. Every country is expected to see anywhere between 10% and 60 % growth in the number of 65-year olds over the next 20 years,” he said at the recent Senior Housing and Healthcare Summit staged by EPRA and the SHHA.
“What we’re not doing at the moment is providing the new level of supply that’s going to meet this need coming down the pipeline.”
The problem is not just quantitative and what is needed for today’s 60-year olds will be different from the requirements of that age group 20 years from now so it is essential to stay up to date and to adapt to changing needs.
In parallel, there is also a need to improve the ESG status of assets.
“We have energy regulations coming down the pipeline, from every country with the race to net zero. There is a real need to do something about the built environment and care homes and senior living has a part to play in that,” Valentine-Selsey said.
Please click on the video above to watch the full interview or listen to the podcast below.