Elderly care and housing demand on the rise

The demand for elderly care and housing in the EU is set to rise quickly. The number of people of over 75 will almost double by 2050, increasing from 46 million to 88 million, according to ING’s report 'Elderly care and housing demand in the EU'.

The demand for elderly care and housing in the EU is set to rise quickly. The number of people of over 75 will almost double by 2050, increasing from 46 million to 88 million, according to ING’s report 'Elderly care and housing demand in the EU'.

“People live longer - since 2002, the life expectancy for new-born EU residents has increased by 2.5 months every year - and the elderly population grows steadily,” says Edse Dantuma, economist health care sector at ING. “In addition, the income of elderly EU households is set to rise. This is due to higher pension income which stems from increasing labour participation of women in this age group.”

The factors that influence demand vary significantly from country to country. In comparing 11 European countries, ING have found that overall potential demand is highest in the Netherlands and Spain. This is based on the number of elderly people, their financial position and their preferences relating to care, household support and senior housing.

The report also found that Spain, Italy and Germany are expected to have the largest population of over 75, while Austria and France have the highest elderly income potential. Cultural differences in Eastern Europe explain why there is less use of professional elderly care in that region, compared to countries such as Belgium, Spain and France.

When it comes to paying for care and household support, it is most common that elderly people in Romania, Italy, Spain and Poland pay their care and household support largely by themselves.

“A significant proportion of European elderly people are open to housing options that are tailored to seniors. As a result of these changes, there are significant market opportunities for investors and elderly housing and care providers across Europe,” says Dantuma.