Rise in Senior Living
Knight Frank predicts the value of the the private senior living sector to increase by £2.1 billion by 2024 as supply rises by 50,000 units.
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In its latest Senior Living Annual Performance Review, Knight Frank's research on investment into the senior living market, along with pipeline supply, indicates that delivery of new units in this sector is set to rise rapidly by 2024.
Analysing the future plans of all major operators against past delivery, Knight Frank is forecasting a 30% increase to the current stock of private senior living units over the next five years. This equals an additional 50,000 private sales and rental units being delivered.
The growth in private delivery will not be spread evenly across the country, however. Knight Frank predicts that this growth will largely be concentrated in the South East, South West, Midlands and East of England. And in London, the number of available private units priced at more than £1,000 per sq ft will likely rise from 300 to 2,000 by the end 2023.
On the rental side, there are more than 4,000 existing senior living private rental units currently in the UK, with 93% incorporated within wider for-sale schemes, while the remaining 7% is being delivered by purpose-built rental accommodation.
The report includes more details on the performance of assets within the sector, from a selection of 200 schemes completed since 1995. This includes sales and re-sales values and velocity as well as achieved £psf.