Study Reveals Increased Real Estate Stock Needed for Seniors’ Housing, Data Centers, and Life Sciences by 2040

The demand for real estate in the U.K. is expected to skyrocket by 2040, driven by the needs of seniors’ housing, data centers, and life sciences, according to a new study by Cushman & Wakefield.

The study, titled ‘The Shape of Real Estate’, predicts a significant increase in the need for additional stock across various sectors due to advanced technology, demographic shifts, and changing standards of the built environment. Seniors housing is expected to see the highest growth at 171.3%, followed by data centers (98.9%), life sciences (53.5%), care homes (44.8%), and PRS (43.1%).

With the aging population projected to grow by 4 million to 17 million by 2040, the demand for seniors housing will be particularly high. Data centers are also expected to double their existing stock to meet the demands of Artificial Intelligence, cloud-based content services, and e-commerce.

The study highlights the need for increased space in the life sciences sector due to rising public interest in health and pharmaceutical industries. This demand for real estate is crucial in shaping the future cities and infrastructure of the U.K.

Daryl Perry, head of U.K. research and insight at Cushman & Wakefield, emphasizes the importance of understanding these variables to identify the gaps in the real estate portfolio and shape future developments. Despite the projected slower economic and population growth, the demand for real estate in various sectors is expected to remain high.

David Haynes, head of specialist markets at Cushman & Wakefield, stresses the importance of increasing the delivery of age-appropriate homes to support the aging population and relieve pressure on public services. The study estimates that four million additional dwellings will be needed by 2040 to address the chronic shortage of homes in the U.K.