Silver Economy: why invest in Senior Housing

As the average age of the population increases, more and more people are looking for senior residences that offer personalized and socially stimulating services.

In this scenario, Senior Housing is confirmed as a key pillar of the Silver Economy, offering a wide range of assets in real estate, resulting in investment and development opportunities.

What is Senior Housing or Senior Living

The Silver Economy (lit. Silver Economy) is a constantly growing reality that embraces a wide range of economic activities and services developed to meet the specific needs, wants and preferences of the over-65s, who, according to the latest data published by ISTAT, represent more than 24 percentof the Italian population.

At the heart of this economy is Senior Housing or Senior Living, a housing style concept that originated in northern Europe around the late 1960s and later spread to the United States, Canada, Japan and those European countries where the presence of the assisted or extended family is less.

Materially, Senior Housing are residential facilities-which include apartments, condominiums, townhouses- specifically designed to provide housing and personalized care for self-sufficient seniors and those who need support in daily living. Their design is focused on creating safe and welcoming environments where individuals can enjoy an independent lifestyle, but with the support and assistance needed when needed.

Senior co-housing

Among the different categories that fall within Senior Housing, we find Silver co-housing: a housing model that allows older people to live together in a community, sharing some spaces but at the same time having their own independence in private housing units.

This form of housing fosters a stimulating and supportive social environment, allowing residents the opportunity to maintain a sense of community, and to share experiences and recreational activities with their peers.

From an economic perspective, senior co-housing can also bring many benefits: sharing some common expenses, such as those for utilities or care services, can reduce individual costs, making this housing option more affordable for many seniors.

Senior Living in Italy: new opportunities

While prior to Covid-19 the Senior Living real estate sector in Italy was still in its infancy, after the pandemic--on a par with countries such as France, Germany or Belgium--it has grown significantly, turning into one of the most dynamic real estate markets in the country.

In fact, the health emergency highlighted the lack of adequate facilities for the older population, prompting the Italian government and private investors to focus more on the development of residences and services dedicated to Senior Living. According to a report published by ISTAT in 2022, in fact, before the pandemic, the number of residences for the elderly was insufficient to meet the demand, but following the emergency, the sector experienced a +20 percent increase in the construction of new dedicated facilities and services.

Not only that, again according to ISTAT, the number of elderly people in Italy is steadily increasing, and it is predicted that by 2050 more than 30 percent of the population will be made up of individuals over the age of 65.

This significant demographic shift has prompted industry players to focus on targeted investments, focusing on the construction of new, modern Senior Living facilities, with the aim of meeting the growing needs of this category.

Source: Bnp Paribas