Europe’s most frequently discussed demographic shift is its fast-ageing population. The European population is forecast to continue getting older, shifting the demographic framework in Europe to an unprecedented extent. In turn, the senior housing sector is expected to experience a significant surge in demand over the next decade, driven by the unprecedented acceleration of the 75+ population whilst the rest of the population is already in decline.
This age cohort is projected to increase by 10.8 million individuals by 2035 (+23%).i This powerful demographic wave positions the sector for remarkable growth and with supply remaining curbed by higher construction and financing costs, demand is likely to outstrip supply in the years ahead. In addition to demand driven by an ageing population, this age cohort, known as the ‘Baby Boomers’, are the beneficiaries of robust defined benefit pension plans and substantial historical increases in house prices. Baby Boomers have emerged as the wealthiest age group in Europe and as the next generation moves into the next phase of their life, their expectations for quality in housing and health services will match their ability to pay for those thingsii. This shift provides a compelling investment opportunity in a sector that already has record occupancy rates and has demonstrated years of strong income growth.
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Supporting documents
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