Property and life cycles

However, generally speaking, it was noted that institutional and social support for the aged is very strong in Europe, since the Covid-19 crisis there has been an increases in healthcare expenditure. If the degree to which the various individual nations intervene in providing care for their aged varies greatly, the European Union will be attributing €9.4 billion of additional investment in the healthcare sector over the next few years in order to improve coordination and harmonise the differences between the different healthcare systems.

The European retirement home and residential care home investment market

The retirement home and residential care home market has shown continued growth as a result of the sector’s business’ significant need for development support. Whilst between 2010 and 2015, the market did not exceed more than €4 billion per year, 2016 was a major turning point in investment strategies since more than €6 billion per year was invested that year.

Consequently for the whole of the 2010-2019 period, €37.5 billion was invested in Europe making retirement home and residential care homes an essential asset in international investment strategies. The largest European healthcare markets have been the United Kingdom, Germany, France, Sweden and Holland.

Our analytical table for European retirement home and residential care home investment

The social and corporate stakes raised by the ageing of the population will require billions of euros in investment that must be distributed between the public and the private sector. In order to identify the most attractive markets, we have analysed a number of different criteria (demographic, sociological, real-estate, etc.).

 We have attributed scores to the various markets analysed. The model identifies 3 major market categories. France, Germany and Holland are the countries with the most attractive return/risk relationship. Spain, Northern Italy, Finland, Belgium and Austria are more balanced markets. And finally, Portugal, Ireland and Poland, for example, are markets where the opportunities may become interesting as they develop.

For retirement homes and residential care homes, we recommend prioritising:

 • an international operator in countries where healthcare coverage is strong or, failing this, in regions where the purchase power of the aged is high;

• the quality of the properties and locations in city-centres or near to major urban centres to guarantee capital returns when the asset is sold;

• limiting exposure to badly situated or designed retirement homes or residential care homes in zones subject to high climate-related risks.

1 Perception des seniors sur le 4e âge. (How the aged see their dependence) Survey completed by the BVA Institute involving 4,000 retired people in France, Germany, Spain and Italy, completed via the internet between 17 July and 3 August 2018.

Download the study