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European elderly care investment set for growth despite COVID-19

Julian Evans

The European elderly care property investment market is set for growth in 2021 despite the COVID-19 pandemic, according to Knight Frank.

The global property adviser said investors remained confident in the long-term opportunities presented by the elderly care market despite the challenges posed by the pandemic.

Julian Evans, Head of Healthcare at Knight Frank, (pictured) said: “Demand for elderly care across Europe has remained high throughout the past few years, driven by demographic shifts and changes to domestic and international markets.

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“Undeterred by the pandemic, investors have helped to address critical funding shortages across the continent and have transformed the landscape for European elderly care. An ageing population, the increased globalisation of elderly care and the spotlight shone on the importance of elderly care by the pandemic have all contributed to an increased appetite for healthcare assets, a trend set to continue going forward.

“The years ahead will undoubtedly bring challenges as investors tackle the post-COVID landscape, but confidence in the sector remains high and we expect to see a continued reweighting of investors’ portfolios toward alternative real assets. The sector’s potential for strong returns is attracting a broad church of investors, and favourable trends taking hold across Europe are likely to increase this interest.”

According to Knight Frank research, €7.2 billion of transactions took place in the market last year with a record €8 billion invested in elderly care and senior living in the four quarters to March 2020.

Investors continue to capitalise on increasing demand for elderly care beds, particularly for full-time nursing care delivered in specialised facilities, with the number of Europeans over the age of 65 projected to grow by 50% within the next 30 years, from 100 million at present to 150 million.

Tags : FinanceKnight FrankResearch
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The author Lee Peart

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