Elderly housing: a real estate market in Germany that hasn’t been fully explored

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Elderly housing: a real estate market in Germany that hasn’t been fully explored

Posted by Tanya Yujelevski on 27/02/2019
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Real Estate Market in Germany. In case you are interested in investing in Dubai real estate, then feel free to connect with Dubai real estate professionals. To get the best property information for real estate investment in Dubai, visit our website today!

Real Estate Market in Germany | Sweet Home

The population in Germany is growing older. This is due to a combination of factors such as low birth rate and improved medicine that is constantly improving life expectancy.

And most of the retiring generation is living in their own housing being assisted by family members or professionals. 29% of them (as of 2013) are moving to specialized nursing homes. The socio-economic status of the currently-retiring population creates a demand for more luxurious housing.

The baby boomers generation born in Germany between 1955 and 1969. And it currently constitutes the population segment. This drives the demand for better solutions for elderly housing. This generation grew up during the post-war economic expansion. And it raises values of individualism and self-reliance. As a result they are relatively well off in terms of finances.

Therefore, in case they opt for assisted living facilities instead of an at-home solution, they are able to afford a more luxurious option. This is currently quite scarce on the German real estate market.

Investors tend to rely on payments from German insurance companies. For building such housing since it is very reliable and easily predicted. When, however, an elderly housing complex offers more services and amenities than required by law. It is up to the customers to pay for those extras and the investors are fearing the risk.

At the same time the demand for such facilities continues to grow, creating a gap in the market that is empty yet due to reluctance of both German and international real estate investors. Thus, it might be a good time to keep up with the demand and offer a more varied supply of elderly housing in Germany.

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