This type of property was perhaps first considered not under a medical or social aspect, but as a niche product on the commercial real estate market. The primary target of the study commissioned by one of the major developers in the Moscow region is to assess the feasibility for developing this format as part of expansion of investment portfolio which already includes residential, retail and hotel properties.
Analysis of demographic forecasts indicated that by 2040 the demand for in-patient care for people in the 65+ age group will increase almost twofold. Such demand growth rates obviously exceed forecasts on other formats and types of commercial real estate.
However, the current occupancy of high-quality specialized facilities in the mid-end price range can exceed 90% at a time when 76% of the average hotel occupancy in Moscow in 2018 is deemed to be the maximum demand driven by FIFA World Cup.
Against the background of high profitability, the format of senior homes is rather complex. This applies to all aspects of development: requirements for the permitted use of land plot, proper conceptual design for the premises with medical specialization (type of disease and the patient`s condition, etc.), positioning and applicable regulatory documents factored in. All these issues require involvement of professional operators, with some of which GVA Sawyer is already cooperating also in the matter of premises selection and technical expertise thereof.