Two Key Considerations When Building Luxury Senior Living Homes
Today’s baby boomers have a huge appetite for everything grand.
This is the rationale behind the development of luxury retirement communities in urban areas.
In the US, there’s already a plethora of upcoming luxury senior living projects boasting entertainment, dining and shopping choices, rooftop pools, celebrity chefs and even spa-style wellness centres.
Meanwhile, astute property developers in Australia added a different flavour to senior homes by including cinemas, ten-pin bowling alleys and wine cellars. No wonder the monthly rental is far from conservative at $25,000, on average.
Pro Tip: With the rising demand for luxury retirement homes and communities which is projected to triple in the future, quick and sharp developers across the globe have started to look into converting unused offices and hotels. In fact, the conversion of commercial buildings to residential spaces has already started. 41% of apartment conversions today have come out of old office spaces with high vacancy rates brought by the pandemic. And with more companies now on a hybrid setup that requires less space, this opens the opportunity for developers to push through with game-changing projects for seniors.
Understanding the behaviour of this market is key to successfully hitting your targets. Here are the top considerations when building a luxury senior home:
Baby Boomers Hate Conventional Senior Homes
Based on the Australian Institute of Health and Welfare, the older generation (65+) will double by 2057. This creates more opportunities for the country’s health sectors and real estate developers to address their shelter needs.
But it has to be more than the basics.
According to Family Matters, seniors repel traditional retirement homes because they see them as the last stage of their lives. This sometimes leads to loneliness, depression, and eventually cognitive decline, especially when the facility and surroundings force them to live a mundane lifestyle.
Our research shows that baby boomers enjoy a multigenerational neighbourhood. Instead of an isolated retirement home in the far suburbs, they would rather be near their families and friends and still be able to roam around the city when they want to.
Baby Boomers Don’t Mind Spending for Luxury Senior Living
Baby boomers make up a significant portion of the global population and are influential due to their purchasing power. Surprisingly, studies show that they are more likely to spend on grandeur things compared to their parents.
Why? Two things.
Longer life expectancy.
More energy to stay active.
Baby boomers are expected to live 10 – 25 years longer than the older generation, giving them more opportunities to do what they desire. And this is more than just sitting the whole day playing checkers. They, too, have their own bucket list. Thanks to Freeman and Nicholson 🙂