2023-07-04 22:00:00
A new market is emerging. Housing for the middle class might bring relief for everyone involved.
There is a lot going on in the real estate market at the moment, but there are also long-term trends. This includes, for example, the area of ”Senior Living”, i.e. the question of how, where and under what conditions the older generation will live in the future. “We see an increasing need here due to demographics,” says Klaus Weichselbaum from Ephic Real Estate in Vienna. He doesn’t have a specific project himself, but there is a lot of interest from operators, investors and communities.
What are the housing needs of the older generation?
“First of all, there is the structural aspect. The majority of the inventory is not barrier-free and often enough cannot be converted either,” says Weichselbaum. This is particularly true when dealing with wheelchairs, walkers and care beds.
From his point of view, this is mainly regarding people with care levels one to three. Those who are in a higher care level usually need 24-hour care or already live in a nursing home. “We want to take care of the senior living below,” says Weichselbaum.
Senior Living: Complexes with small residential units and common areas
It’s regarding buildings with rather smaller, but several residential units, regarding common rooms and gardens. “These are similar demands as in tourism,” explains the expert. Because there is also a need for animation for older people: a so-called community manager organizes certain services, such as craftsmen, but also massages or sports activities. “This also serves to form a community,” says the project manager.
In such residential complexes, senior citizens would need common areas on the one hand, and a personal retreat on the other. “Then it doesn’t have to be that big.” Since seniors often have restricted mobility, certain services have to be brought to them. But doesn’t that cost a lot more? “On average, an apartment costs ten euros per square meter, with such a facility it would be 20 euros. You can do with a smaller area, because the whole thing should remain affordable.” His idea comes from the hotel sector: small rooms, lots of community. “It would therefore make sense to convert abandoned hotels into homes for the elderly.”
Weichselbaum therefore does not see the potential in luxury residences either, since very few retirees receive such a high pension. “In Austria, the average pension is 22,000 euros net per year. We therefore see a need between luxury residences and social housing.” Weichselbaum, whose company Ephic is mainly active in tourism, puts it this way: “We see potential in the middle, comparable to a three-star hotel, i.e. without a swimming pool etc.”
Where might such retirement homes best be built?
“At least not in central areas of the state capital, that would be far too expensive,” says the real estate expert. “Peripheral locations in medium-sized towns with 5,000 to 15,000 inhabitants would be better, but integrated into the necessary infrastructure, i.e. with shops, medical practices and bars nearby that can also be reached on foot with a walker.”
Which future trends should be considered in such new residential complexes? That is, above all, assisted living. “I’m talking regarding technical applications that make the lives of the elderly safer. Something like this starts with fire alarms and goes all the way to a fall floor that sounds the alarm if a person doesn’t move. But also controls for refrigerators and shading – keyword: Smarthome – are to be integrated.”
There might also be different packages for daily supplies, such as a basic package with additional packages as far as food supply is concerned. Another trend worth considering is multi-generational living. “That hasn’t caught on yet,” says Weichselbaum. “But several generations together, that would result in some synergies.”
In any case, he sees positive feedback for his considerations: “There is tailwind from the municipalities and from all parties.” But why should you move out of your property at an advanced age and move into such a rental building? “E.g. because you leave the house to the children and their families. Isolation in a house that is too big and changed needs can also be the motivation to prefer to live in such a facility.” This is affordable for the upper middle class – for example, if a company pension is paid out – but which does not belong to the upper income quarter. “With the care allowance, corresponding needs can be covered. If the care effort increases, there is also more care allowance.”
What is the difference to assisted living in the communities? “Although they are cheaper, they usually offer fewer services. In the hotel industry, that would be comparable to a one- or two-star hotel.” As an example of a project that is already underway, Weichselbaum cites the so.me home in the Seeviertel district of Gmunden. It’s like a hotel with apartments for the elderly and normal apartments, but with a shared concierge service, such as bike rental.
DEMOGRAPHY AND LIVING SITUATION
Population development 65 plus
Depending on the federal state, the age group of 65 to 84 year olds accounts for 15 to 20 percent of the total population in Austria. In absolute terms, this corresponds to 1.52 million people. Shares of 20 percent are reached in Burgenland and Carinthia, while the lowest share is in Vienna at 15 percent. This already shows the increased concentration of older population groups in more rural areas in contrast to urban and densely populated areas. In the age group 65 to 84 years, a population increase of 35 percent from around 1.52 million to 2.06 million people throughout Austria is expected by 2050. Due to the continuously improving health of seniors, it can be assumed that mobile and semi-stationary offers will have a high potential for expansion in the future. The same applies to assisted living units.
housing situation
The age group 60 plus spends less money on housing costs in comparison in all categories. People aged 65 plus spend an average of 328 euros per month on housing costs (as of 2020). In the age group 65 plus, an average of 17 percent of the household income is needed for housing costs. It should be noted that 34 percent of the people live alone and are mostly women. The average living space per apartment for people aged 60 plus is 86 square meters, which means that people in this age group living alone live in larger apartments. The move to a senior housing project is therefore a clear cut for the target group and a change from large to smaller living spaces. The location should be centrally located so that the relevant local supply and leisure facilities or medical facilities can be easily reached on foot.
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