Within a context where the dependency ratio, representing the proportion of the non-working population (comprising those aged 0-14 and over 64) to the working-age population (ages 15-64), has risen to 57.5% by 2022, Senior Housing emerges as a strategic solution to address the evolving demand for residential accommodations among a growing segment of the population. This option serves as an alternative to aging in one’s own residence or within a nursing home.
However, even though this trend has already gained significant popularity in the United States and Northern Europe, Italy continues to face substantial cultural resistance.

A new way of living, Senior Housing

The year 2022 witnesses a new rise in the Aging Index, indicating the number of elderly population (+65) per 100 individuals below the age of 14 within a particular population. This index reached 187.6 elderly individuals, solidifying Italy’s position as one of the most “aged” countries in the European Union.
Let’s begin with these numbers to delve into how the aging phenomenon is exerting a growing influence on our society’s requirements. It not only influences the present but also plays a crucial role in shaping future needs that go beyond mere economic aspects. For example, it affects decisions such as selecting a place to live during one’s senior years, a choice that transcends economic factors.
This is the reason the inquiry, “Where will I reside in my later years?” has evolved from mere speculation into a strategic consideration within today’s financial planning.
Senior Housing emerges as a solution and assumes a crucial role in the housing market, as the demand for residential solutions for self-sufficient elderly people seeking an independent lifestyle, complemented by supportive services and trained staff, continues to rise.

Senior Housing characteristics

Senior Housing – or Independent Senior Living – is a system of independent apartments, with living room, kitchen and bathroom, organized around a series of additional common services, designed for people over 65 who are still in good health and dynamic.
In contrast to nursing homes, this housing model combines private residences that prioritize individual privacy alongside communal spaces for social interaction. It provides seniors with the chance to reside in a secure and comfortable environment, offering access to services and activities that contribute to the preservation of their independence and overall quality of life.
Nowadays in Italy these types of housing are mainly located in the central area of regional or provincial capital cities and often accommodate over 65s who tend to stay within a relatively short distance, generally no more than 15 kilometers from their primary residence. This inclination aligns with the prevalent Italian culture of property ownership and, consequently, results in relatively limited residential mobility over one’s lifetime.
The Senior Housing target has an average income between 20 and 30 thousand euros and can supports a monthly average rental fee which can range from 1500 to 2500 euros.
The homes are made up of two-room apartments with an average size of 50-60 m2 and the services and common areas made available to residents, at least 10% of the total surface area, are mainly the 24-hour reception, bar, restaurant, lounge reading and TV, gym and swimming pool.

Sector Prospects

These hybrid solutions in Italy are not mapped because they are developed and managed by private or non-institutional investors, however we note some examples such as a structure present in Bergamo. The center was inaugurated in 2020 and, with its 124 apartments, is considered the first Italian response to Senior Housing.
Investors considering these options employ an asset diversification strategy, channeling their investments towards meeting the expanding demand for services and housing solutions stemming from the rising elderly population. This demographic growth forms a solid basis for achieving economies of scale.
These structures therefore generate stable profitability typically in the medium-long term, guaranteed by rental fees and services supply.
Furthermore, owing to this factor, many specialized international operators look at the Italian market with interest and want to enter into the management of this type of residential rental by aiming for partnerships with real estate funds serving as investors.
But cultural resistance remains relevant, and there is a need to foster, train and generate demand by encouraging the birth of new communities of residents, with interventions upstream of planning and investment activity.