Since 1995, the compound growth rate for housing with care has been 6%, with an average price difference between sales of just over £41,000.
Based on this, JLL predicts that a retirement home could double in value in 12 years.
JLL estimates that almost 80% of over 65s could be classified as mid-to-high affluence by 2025, as a result of house price wealth.
Currently, one-in-six of the over-65 population has a household wealth of over £1m.
Philip Schmid, director in JLL’s retirement living team, said: “The housing with care market currently sits at 0.72% in the UK, compared to 5% in countries like Australia and New Zealand.
“The single biggest challenge facing older people in the UK is a complete lack of appropriate housing choices to suit their lifestyle, care or support needs as they age.
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“Our clients want to invest in the sector and evidence like this helps to show the long-term performance encouraging investment and improving the choice and accommodation for our ageing population.”
JLL’s analysis of the housing with care market has been managed by the Associated Retirement Community Operators (ARCO) over the past 22 years.
Michael Voges, executive director of ARCO, added: “The research confirms what we are seeing on the ground – housing with care properties continue to be in high demand.
“Our members focus on more than just bricks and mortar.
“They also deliver services designed to enable older people to stay independent for as long as possible.
“The data shows that with the mix of services and facilities, retirement communities are well placed to retain or increase their value in the long term.”