Next generation property investing: The ageing population mega trend

8 minute read

Matthew Norris

Director, Real Estate Securities

Property investing is all about people. Because where they live, work and play has a direct bearing on the properties required to service their basic needs. This means the key to successful property investment is to recognise behavioural and demographic shifts early on, determine the types of property most likely to benefit, and capitalise on the new trends as they emerge.

Overview of the strategy

Here, Matthew Norris, Investment Adviser of the VT Gravis UK Listed Property Fund, outlines four mega trends he has identified for the next generation of property investing.

Mega Trend #1: Ageing population

What is the ageing population megatrend?

The profile of the UK’s population is changing. Life expectancy has increased dramatically over the last few years, and this is having a huge impact on the properties required to service an aging population.

The over 85s is the fastest growing cohort in the UK and it's estimated that its number will double to 3.4m by 2046*. As people over 85 will, on average, visit their GP 13 times each year*, demand for the services they depend upon will naturally increase. That means more demand for GP surgeries and for care homes.

Source: Population estimates, Principal population projections, 2016 based, Office of National Statistics.

Increased investment in the sector is desperately needed and the private sector has stepped up to support efforts to improve the properties needed for the care of the elderly. Companies are helping provide modern purpose-built premises offering not just treatment rooms but also pharmacies, physiotherapists and social care on site.

Owning healthcare assets is also attractive for investors as they provide long-term, sustainable and growing rental income, often backed by secure government funding. Coupled with the demographic shifts that work to support the long-term case for investment in the healthcare sector, and the far-reaching social benefits, the investment case becomes increasingly compelling.

The specialist listed real estate investment trusts (REITs) investing in care homes and GP surgeries understand that ensuring the quality of the accommodation they provide will be crucial not only for residents, but also for the longevity of each of the assets they own.

*Source: Office for National Statistics

Click here to find out about Mega trend 2: Digitalisation and the 3 C's.


Important Information

This article has been prepared by Gravis Advisory Limited (“Gravis”) and is for information purposes only. It is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Any recipients outside the UK should inform themselves of and observe any applicable legal or regulatory requirements in their jurisdiction.  

This article should not be considered as a recommendation, invitation or inducement that any investor should subscribe for, dispose of or purchase any securities or enter into any other transaction with any fund affiliated with Gravis.   

Although high standards have been used in the preparation of the information, analysis, views and projections presented, no responsibility or liability whatsoever can be accepted by Gravis for any errors, omissions, misstatements, loss or damage resultant from any use of, reliance on, or reference to the contents. The views and opinions contained herein may not necessarily represent views expressed or reflected in other Gravis communications, strategies or funds and are subject to change.  

Gravis Advisory Limited (Registered Number: 09910124) is authorised and regulated by the Financial Conduct Authority. Gravis Advisory Limited’s principal place of business is: 24 Savile Row, London, W1S 2ES. 

Gravis Advisory Limited is authorised and regulated by the Financial Conduct Authority registered in England & Wales No: 09910124. Gravis Advisory Limited’s principal place of business is: 24 Savile Row, London, W1S 2ES 

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