The Italian Real Estate Healthcare Market Performance in 2024
Insight
Italian Healthcare Snapshot | 2024
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Key takeaways:
- Increasing demand for long term nursing homes in the coming years | An ageing population and increasing life expectancy will drive demand for long-term care facilities in the coming years. In Italy, people over the age of 65 currently represent 24% of the population. This figure is expected to increase significantly over the coming decades, reaching 34% by 2050. This demographic trend highlights the growing need for specialized healthcare and assisted living services for the older population, creating opportunities for the nursing home and long-term care sector.
- Specialized operators address the needs of Italy's aging population | The Italian nursing home market is undergoing substantial privatization. As of 2022, private hospitals and clinics integrated into the National Health Service (NHS) comprised 485 facilities, providing approximately 45,500 beds. The sector has experienced significant growth, with the number of patients in nursing homes rising markedly over the past decade. In 2022, these facilities served more than 420,000 residents, representing a 20% increase compared to 2012. This trend underscores the expanding role of private healthcare providers in addressing the needs of Italy's aging population.
- Italy’s long-term care challenge: bridging the supply-demand gap | Market supply of long-term services is still very limited in Italy, with many regions still far from striking a good balance between supply and demand, although the development activity is fervid. For Italy, the coverage rate is expected to decrease from the current 1.9% to 1.7% by 2035. To reach a coverage ratio of 5% means that in Italy more than 600,000 beds need to be on the market by 2035, therefore doubling the current supply.
After a declining 2023 in line with the general trend in real estate investment, capital markets volumes in the healthcare sector in Italy saw a total of around € 110 million in Q1-Q3 2024, with significant ongoing deals likely to materialize between year-end and early 2025, which could boost the sector.