Senior housing values likely to rise more than 6pc this year
LONDON: Despite the ongoing challenges presented by the COVID-19 pandemic, investors are expressing a returning confidence in commercial real estate values and performances, a new survey shows.
The latest investor sentiment index score jumped 25 points from the second half of 2020, to 165, according to an Investor Sentiment Survey conducted by real estate investment firm Marcus & Millichap and Wealth Management Real Estate’s research unit, Informa Engage. The first-half 2021 survey results are almost on par with the 166 index score recorded a year ago just before the onset of the pandemic, the firms noted. In addition, more than half of respondents (56%) said they have an abundance of capital ready to invest.
More than 500 private investors, developers, advisers, lenders and real estate investment trusts responded to the survey, which was conducted Feb. 3 to 10.
When it comes to senior housing in particular, investors remain optimistic about the recovery outlook, with 59% of respondents predicting that values will increase in the coming year by an average of 6.7%. Sixty percent of respondents think it is a good time to buy more, whereas 40% believe it is better to sell.
“People 65 and older and workers at senior care facilities are both in the highest priority group for receiving vaccinations, which should help speed the recovery of this industry, and the long-term demand drivers for the sector remain sound as baby boomers move into the age range that most often needs seniors housing,” said Todd Lindblom, vice president and national director of Marcus & Millichap’s Seniors Housing Division.
