The market for senior residences - France

The French market for senior residences meets the needs of an aging population, with a particular focus on independent people aged 75 to 84, and has seen growing demand due to demographic changes. By 2021, there were 972 residences offering 75,675 units. Major players such as Domitys, Korian and Seniorales dominate the market, with Domitys holding a 31% share of the rapidly expanding second-generation senior residences market. The COVID-19 pandemic has had a contrasting impact on the sector, initially causing a drop in market activity in 2020, but also underlining the need for senior residences and leading to increased demand in 2021.

With 27.1% of the French population aged over 60 in 2022, and projections suggesting that this figure will rise to 28.1% by 2025, the market offers potential for growth and innovation, such as smaller, more personalized communal living units and an increase in digital service offerings. Despite competition from alternatives such as EHPAD and home services, senior residences retain their appeal by offering a range of services and activities, with costs varying according to location and standard of living. Challenges to price transparency and the need for greater differentiation of service offerings have been noted, but the market continues to attract both individual residents and private investors.

Analysis of the French senior housing market: Trends and key figures

The market for senior residences in France is growing in line with the country's ageing population, with a particular focus on people aged mainly between 75 and 84, who are looking for independent living in non-medical environments. This solution lies somewhere between the traditional retirement home and home care, offering comfort and security thanks to furnished residences designed to prevent falls and accidents, and providing a wide range of services, from administrative assistance to canteen facilities. The target elderly population generally enjoys a fairly comfortable retirement, with an average pension close to 2,000 euros per month.

The French market for senior residences is estimated at around 278.7 million euros in 2021, based on the sales of major players such as Domytis, Korian and others, demonstrating the considerable impact of French senior residences on the European market. The sector's rapid growth is being driven by the second generation of senior residences, which offer individualized services to residents and have grown by around 12% in recent years. Unlike their first-generation counterparts, modern senior residences are also competing with emerging alternatives such as senior co-housing and in-home services, although the threat they pose is not yet significant.

From a demographic point of view, a growing number of seniors in France, representing almost three quarters of people aged 65 to 74, remain independent. With an average age of 83 for loss of autonomy, and only 20% of people over 85 in a situation of dependence, the standard of living of senior citizens is comparable to that of working people aged 30 to 49. Despite the large gap between the onset of life's difficulties and death, seniors who opt for residential living generally aim for simpler management of daily life, seeking accommodation that encourages their independence and social involvement.

Geographically, the Île-de-France and Rhône-Alpes regions concentrate the majority of the elderly population, although this proportion is not necessarily high in relation to the overall population. Interestingly, regions such as Nouvelle Aquitaine, where the elderly account for over a third of the population, are becoming attractive locations for senior housing companies.

The structure of the senior housing market is expanding, with the number of residences doubling over the past decade. Most companies now offer rental options for the elderly, often backed by investors who enjoy lucrative returns and benefits such as tax incentives. Rental properties come with basic services included in the rent, with optional à la carte services available for an additional fee. The price of these residences and additional services varies considerably, depending on location and size.

The main players in the French senior residences market

The French market for senior residences, which caters for a population characterized by increasing longevity and a desire for independent living, features several notable players known for their different approaches and services within the sector.

• Domitys - The market leader with a global approach Domitys is the market leader in senior residences. It is renowned for its diversified, personalized service offerings that meet the needs of the aging population. Its residences are designed to ensure comfort and security, and appeal to seniors who wish to live independently while benefiting from assistance.
  
  
• Korian - A strong presence with a growing influence Korian occupies an important place in the market with its senior residences. By offering environments that promote the well-being and socialization of seniors, Korian residences have continued to attract families looking for reliable accommodation solutions for their aging loved ones.
  
  
• Les Senioriales - A subsidiary with holiday roots Les Senioriales, a subsidiary of the Pierre et Vacances group since 2007, brings a unique vacation flavour to the senior residences market. The emphasis is on creating comfortable living spaces with a mix of services and leisure activities, reminiscent of a vacation retreat.
  
  
• Les Girandières and Les Jardins d'Arcadie - Specialists with a personal touch Les Girandières and Les Jardins d'Arcadie bring a personal touch to the market, focusing on creating communities where seniors can enjoy a rich social life and a range of activities. Both players are firmly committed to improving the quality of life of their residents.
  
  
• Les Villages d'Or and Les Hespérides - Meeting the needs of a diverse senior population Les Villages d'Or and Les Hespérides offer housing options that meet the diverse needs and preferences of seniors. From the promise of a vibrant community to the availability of personalized services, these players recognize and meet diverse expectations.
  
  
• Emera and Cogedim Club - Diversified portfolios focused on seniors Emera and Cogedim Club are exemplary companies that have diversified their portfolios to include the operation of senior residences, as well as other services such as medical facilities and retirement homes. This diversified approach enables them to draw on expertise acquired in different areas of care and accommodation.
  
  
• Domus and Orpea - thriving on innovation Domus and Orpea are renowned for their innovative approach to housing the elderly. Their forward-looking strategies and the integration of modern equipment into their residences represent a progressive step towards meeting the needs of the elderly.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 25/08/2022

Summary and extracts

List of charts

• Life expectancy and healthy life expectancy at birth
• Age-related self-management difficulties
• Median standard of living by age group
• Ranking of the 10 regions with the highest proportion of senior citizens
• Change in the proportion of French people aged over 60
• Number of senior residences by major players
• Growth in the number of senior residences in France
• Growth in the retirement home and personal services markets