Introduction
In 2019, we conducted a market research study on assisted living apartments for seniors for an international leader in the senior care market. With the increasing affluence of Poles and the aging of the population, there is a growing demand for services aimed at assisting older individuals. Nursing homes and assisted living apartments in Western Europe have become a well-established market segment, expanding into Poland in recent years. The study aimed to determine the market size, clients' financial capabilities, and identify potential entry barriers for our foreign client. The research methodology was based on Desk Research analysis.
Implementation
Data acquisition through Desk Research involved multiple sources, including industry reports, data from the Central Statistical Office, and information obtained directly from competitive entities. The collected information was augmented by a telephone mystery shopping survey, ultimately providing the broadest material for analysis. Key aspects of the study included:
- Demographic data analysis
- Salary analysis of the target group
- Identification of senior care facility operators
- Competition analysis
- Benchmarking
Results
The research project allowed us to identify a market niche that could be exploited by our international client. It enabled the determination of competitive advantages necessary for entering the senior living development market. The main target groups were classified as follows: adult children of parents from large cities (due to their relatively higher incomes), older individuals from Western Europe, individuals in the age range of 60-70 living in metropolitan areas. The study also identified a relatively narrow group of investors interested in purchasing senior living apartments for investment purposes. Despite the numerous benefits, investing in senior living apartments is not a popular method in Poland. With the purchase of this type of flat, the investor gains a long-term tenant with a stable income and at the same time a reduction in the existing risks in the residential rental market. The competition analysis revealed that:
- The number of entities offering sale or rental of assisted living apartments is very small, with some offers still in the conceptual phase.
- In the Mystery Shopper telephone survey, it emerged that employees talking to a potential customer have no idea about their senior offer from the company they work for. This attitude discourages potential customers from taking a look at the offer. Moreover, there are significant discrepancies with the offer presented on the website and the offer presented by the employee of the respective developer/operator, e.g. when it comes to the prices of the stay. Sometimes it also appeared that the development is only in the construction phase, which does not necessarily match the information on the website.
- Significant discrepancies were observed between the information presented on the company's website and that provided by employees, especially regarding pricing.
- Most facilities limited medical care to a resident nurse and collaboration with a doctor or nearby medical clinic. The description of services often deviated from practical access.
- Only a few companies offered advanced 24/7 medical care, mainly for individuals requiring rehabilitation, especially post-stroke care.
- There is only one facility in Poland offering assisted living for individuals with dementia.
- Most competitive facilities offered concierge services, but to a limited extent. These services play a crucial role in providing assistance to older individuals.
- Available facilities in Poland often had a modest or nonexistent rehabilitation offering, despite market demand.
- It was noted that the rental cost of such apartments was only slightly higher than the cost of staying in well-equipped senior care homes.
- The market now includes not only developers offering such services but also entities supporting such investments, including agencies attracting tenants, especially from Western Europe.
- Most identified facilities were located in tourist areas, away from large cities.
- Foreign entities within large capital groups dominate the market, with the remaining market share held by small facilities owned by Polish entities.
Demographic data, loosening family ties in society, and improved financial situations of Poles in recent years favor the development of this market sector, which is currently underdeveloped with limited competition. The research enabled our client to develop a market entry strategy and identify the necessary competitive advantages in the market.
