Commercial property demand to come from care sector in 2022

The care sector will increasingly demand commercial property in 2022, meaning there’s opportunities for developers to adapt existing vacant properties for that market.

There’s likely to be a need for care homes which specialise in long Covid health problems, while care home operators dealing with issues like dementia could expand.

The predictions were made by Anthony Meadowcroft, president of industry body Propertymark’s commercial property advisory board.

Manufacturers and suppliers of personal protective equipment (PPE) will also be seeking commercial property, alongside the tech companies and laboratory spaces working on health.

Some small home-based businesses which thrived during the pandemic are seeking spaces, though some are getting together with others to create ‘home business hubs’ in larger units.

The pandemic has led to a strong appetite for office and retail units that are away from the more traditional town and city centre commercial hubs, and this is a trend that’s likely to continue this year.

Due to this shifting demand there’s been an equalisation of property values and rental incomes in outlying areas of towns and cities, and in rural areas.

Meadowcroft said: “Expected demand from the health and care sector as well as the changing habits of where people work, shop, and socialise will be the major driver of the commercial property market in 2022.

“A focus for the year ahead will absolutely be on the care sector and its wider network. From expanding care home operators delivering the likes of dementia and palliative services, we could also start to see a rise in a new form of care home specialising in long Covid health problems.

“We will be watching closely to see how and where that care will be provided, whether that’s extensions to existing sites, new-builds, or converting and adapting of existing vacant properties such as offices, pubs, or hotels.”

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