Real Estate Investments in RSAs

It is no news that the ageing of the Italian population over the last 50 years has been the fastest among the most developed countries in the world. Projections estimate that in 30 years' time Italians over 65 will make up 35% of the total population.

There are two types of response to this endemic Italian problem: Care Homes and RSAs (Assisted Healthcare Residences). The former are intended for guests who are at least partially self-sufficient, while the latter host non-self-sufficient individuals who may require medical care.

These facilities, in turn, can obtain an agreement with the Public Health Service (in which case it is the Public Health Service itself that places residents and charges a “regulated” fee proportionate to the resident's income) or operate without such an agreement. In the latter case, the financial relationship is entirely between the resident and the RSA / Care Home.

Let us now turn to the aspect of interest regarding real estate investments in RSAs and similar facilities, and consider its key features.

Profitability of the Investment

These properties offer profitability well above that of residential real estate: the returns are entirely comparable to those typical of commercial property (shops, shopping centres, hotels). There is no doubt that the operators of these facilities carry out a profitable commercial activity.

Regularity of the Investment Return

Unlike ordinary commercial activities, however, these tend not to raise any particular concerns: the ageing population, at least over the next three decades, will continue to provide a substantial flow of “customers” to these facilities.

Safety of the Investment

A final consideration concerns the fact that this sector is heavily regulated and overseen. For this reason, the operators of care facilities are almost always very well-organised structures, capable of ensuring the highest standards of efficiency and safety.