New investment opportunities
Real estate has always been considered a stable investment, with slower and less pronounced fluctuations in value and risk than other financial asset classes.
However, the pandemic has accelerated some of the changes already taking place in the industry, giving a strong boost to technological innovation and ESG (acronym for Environmental, Social & Governance), which aims at environmental, social and governance sustainability.
Another important effect of the pandemic in real estate is that it has, on the one hand, contributed to increasing the appeal of sectors such as healthcare or logistics and, on the other hand, has also created space for alternative asset classes such as youth housing and new forms of co-living.
Alternative assets are now an important part in the construction and diversification of an investment portfolio, of which student housing and senior housing are increasingly an important part.
Over the next decade, as these new investment opportunities evolve, investment in these alternative assets is expected to increase in both Europe and the US.
In particular, senior housing consists of renting accommodation and a range of services ‘on call’ to self-sufficient persons over 65 years of age, seeking greater security and comfort.
Senior housing is barrier-free and equipped with advanced technology, making it much more accessible and usable for over-65s.
In continents such as the US and Europe characterised by a growing ageing population and low birth rates, one can understand how the growth potential of the ‘senior living’ asset class is very high.
The difficulties resulting from the recent global crisis therefore do not seem to have particularly affected the resilience of the real estate sector.
Indeed, we can say that they have transformed it, creating new prospects for alternative investment and new expectations of long-term growth.
Thanks to its traditional innovative approach and constant monitoring and study of social changes that often anticipate new real estate and/or housing needs, Agedi offers its investors ad hoc solutions and projects in these real estate segments as well.