We're delighted to present an article written by Stephen Penn, content editor at Abode2 Luxury Property Magazine. Abode2 is the No1 Google Ranking luxury global real estate magazine and website portal aimed at affluent property buyers, investors and second-homers.
When searching for the hottest new investment opportunity, people need only look to their future.
Stephen Penn, Content Editor at Abode2 takes a closer look at how investing in old-age accommodation can be a lucrative affair.
Golden Years Goldmine With Luxury Retirement Home Investment
Thanks to rapid medical advancements over the past decade, people are living much longer, which in turn has resulted in a surge in not just retirement properties, but high-end accommodation for golden-years living.
Recent data from Savills shows that rented sheltered housing in the UK does not meet the needs of 25 per cent of older households, and Britain’s over-65 population is predicted to grow four times faster than the general population over the next five years.
In light of these statistics, savvy investors are recognising the lucrative nature of luxury retirement living, as many wealthy elderly people look to downsize without compromising on the finer things in life.
Jane Slade, Founding Editor of RetireMove, explains:
This market is booming because of the demographic of society today. People are fitter in their old age and want a good quality retirement. They need to be offered something special to be persuaded to leave their nice homes, and that has resulted in a rise in high quality retirement villages packed full of every amenity imaginable.
One developer taking the market by storm is Pegasus Life, which recently acquired later living housebuilder Renaissance Retirement, doubling its portfolio of developments to more than 70. This move has made it one of the biggest retirement developers in the country.
Offering an air of elegance, their Chapelwood development in the heart of Wilmslow has been designed to reflect the country manors of the surrounding landscape, seamlessly blending bright and airy countryside with sleek town vibes.
But above all, wellness is at the centre of this development, complete with a hydrotherapy pool, Kreipp therapy area, spa terrace and a tailored gym studio with personal training sessions available.
As Howard Phillips, Chief Executive Officer of PegasusLife says:
We face a market that perceives retirement properties as unattractive and undesirable. At PegasusLife we are revolutionising the sector to deliver vibrant, sought-after, truly unique living environments.
Also growing its presence is Elysian Residences, which has joined forces with US-based company One Eighty, to create The Oren, the first luxury later living development with integrated care to be built in Hampstead.
Elysian Residences Chief Executive Officer, Gavin Stein observes:
A zest for life is not something which diminishes with age, neither does a taste for the finer things. We are dedicated to creating an inspiring and uplifting environment for our residents so that they not only flourish, but thrive in their Platinum years.
So while care homes have been struggling in profitability due to tight local authority budgets, demand for the luxury end of the spectrum has been soaring, with weekly fees increasing by more than 50 per cent over the past four years.
Due to the growing pool of potential occupants – by 2045 the Office for National Statistics predicts over 65s will account for almost a quarter of the UK’s population – accommodation like this is in high demand and many people are jumping on the bandwagon.
Henry Lumby, the former retirement director at Savills, recently became the MD of a new retirement specialist company called Amicala. The firm has some big financial backers and plans to develop retirement living for the over 75s in the capital.
No sites have yet been acquired by Amicala, but this news clearly demonstrates that the big players in the property world are recognising the financial opportunity that accommodation of this kind offers.
Knight Frank has also cited a £10 billion of overseas wealth that is heading for this sector, heralding that it is time to strike while the iron is hot.
Visit Abode2 For Property And Investment Insights
Abode2 is a must-have read for anyone serious about buying in the UK or overseas, be it for investment, lifestyle or retirement purposes. Abode2 offers distilled advice from expert sources: acknowledged property specialists, investors and owners, all with a detailed knowledge of the destinations and resorts featured.
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