Senior Living in Europe: The Third Pillar of Operated Residential Investors Are Discovering

€16.1 billion was invested in European senior living in 2025, including a record €11.8 billion in the UK. Excluding the UK, activity nearly doubled versus 2024, driven by a Nordic rebound. Yet institutional penetration of the segment remains below 3% in most European countries — a considerable gap between demographic momentum and actual capital allocation.

That gap isn't hard to explain: according to Eurostat, more than 30% of the population in France, Germany and Italy will be 65 or older by 2030. The share of the 65+ population in the EU is projected to rise from 22% in 2024 to 28% by 2045 — nearly 29 million additional people. This 'silver wave' is one of Europe's most predictable demographic trends — and yet one of its least capitalized real estate segments by institutional capital.

Why institutional demand is accelerating now

Investment in operated real estate (OpRE) sectors has taken a growing share of total European investment since 2022, rising from 30% to 38%. Nearly two in five investors plan to increase their allocation to these sectors further over the next three years. The return of liquidity in 2025 is expected to strengthen institutional demand for senior living in 2026, supported by substantial core and value-add capital seeking exposure to the sector.

This allocation lag against such predictable demographic demand creates a rare setup: a segment where demand risk is structurally documented, but where institutional capital supply remains well below the opportunity. That's exactly the kind of imbalance FINXIA's operated residential thesis is structured to capture.

Senior living, an operated asset alongside coliving and PBSA

Senior living shares the same operational logic as the rest of flexible residential: performance depends on active management quality — integrated healthcare services, qualified staff, managed occupancy — far more than on simple property ownership. It's this operational dimension, common across operated residential, that structurally brings senior living close to coliving, PBSA and build-to-rent within the same asset management know-how.

FINXIA Capital targets senior living alongside the other flex residential segments, with assets operated by specialized healthcare-residential partners, under the same large-format structuring discipline applied across the entire Residential & Flex Living pillar.

An asset class to watch closely in 2026

European senior living combines three rare traits for an institutional investor: demographic demand documented over several decades, a capital supply still well below the opportunity, and an operating model directly transposable to the know-how already deployed on coliving, PBSA and build-to-rent. This combination is, in our view, what makes it the natural next execution ground for FINXIA's residential thesis.