Healthcare real estate in a post-covid world
The new strategic function of healthcare real estate
The ongoing pandemic crisis has highlighted the need to expand healthcare real estate infrastructure, including: Retirement homes and assisted-living senior housing; Nursing homes; Hospitals/clinics; Psychiatric institutions.
Society has become aware of the major role that the healthcare (treatment and infrastructure) sector might play in resolving crises.
Many weaknesses have also been revealed, however:
- Institutions must rethink their healthcare infrastructure models and massively invest to offer suitable solutions;
- As public supply is limited, governments will need to turn to private investors in healthcare real estate across Europe to meet future demand for new buildings and for the renovation of some ageing, and even obsolete, facilities.
These significant healthcare real estate infrastructure needs are driven over the long term by demographic factors:
- The general growth of the population, which will put pressure on healthcare systems;
- The rapid ageing of the population, which will result in people living longer in better health, but will also leave senior citizens facing the development of the conditions that come with advanced old age.
The demographic pressures already at work are having an impact in many European countries, but forecasts suggest that the pressure on healthcare systems will increase over the next 20 years. Understanding the drivers of the demographic and real estate trends affecting healthcare infrastructure is therefore essential for building a Europe-wide long-term investment policy.
Investment in healthcare infrastructure is at the intersection of major social and environmental challenges:
- Reducing of the environmental footprint of real estate and increasing of the sustainability of buildings;
- Prevention and management of health issues;
- Inclusion of senior citizens in society, including the most dependent, in optimal care and safety conditions.
The social added value of these investments is coupled with an attractive and relatively reliable risk/return profile in current market conditions.
With a university education in local economic development, Daniel While began his career as business establishment consultant to local authorities. In 2006, he joined the Institut de l’Epargne immobilière et Foncière as analyst, and specialised in the world of unlisted real estate funds (SCPIs and OPCIs for France).
He is co-author of the book Les OPCI published by Delmas (September 2008). He joined Primonial REIM in 2017, where he held the position of Development Director, then Research & Strategy Director from 2019.
Henry-Aurélien Natter joined Primonial REIM as Research Manager in January 2018. He has the mission of developing the analyses of the Research & Strategy Department on the real estate markets, the economy and capital in France and in Europe.
Henry-Aurélien Natter began his career at Les Echos Etudes (formerly Eurostaf), then at C&W (formerly DTZ), and lastly at BNP PRE, where he acquired solid and varied experience in real estate research, strategy and finance. He is qualified with an AES degree in Business Management, a Masters Decree in management and SME management, and an International Master in commerce and marketing.
After a successful internship in Primonial REIM France's Research and Strategy team, Adrien Isidore joined the team as an economist-statistician in late 2020. Adrien holds a Master's degree in Economics and Statistics from Panthéon-Assas.
Adrien Isidore decided to become an economist after an exchange program in Australia during which he worked in international research groups on various projects, giving him a taste for research. He also holds a bachelor's degree in economics and a university degree in mathematics and finance. His role is to propose innovative statistical tools and to write studies on different countries while providing support in the structuring of the department at the European level.