Spain is one of the oldest countries in the world. With the second highest life expectancy in the world and the highest in Europe; Its population pyramid widens at the top: Almost 30% of Spaniards are in the age group between 55 and 84 years. This percentage, if the demographic trend of the last 20 years continues, will increase as time progresses.
The longevity of the Spanish population is accompanied by an active lifestyle of the senior population who, thanks to advances in health, enjoy greater independence and quality of life than in previous decades. Thus, in a context in which residential solutions Healthcare They do not respond to the demands of the senior population that does not require medical care, other sectors are beginning to emerge and consolidate in the market.
Among them the Senior Living, a new model that has been born to meet the demands for accommodation and offer a large part of the population over 65 years of age the opportunity to live in the company of a community of people with similar ages, interests and concerns. In spaces fully equipped with all the services necessary for daily life and with common areas that allow you to enjoy coexistence with a homogeneous community. The combination of these phenomena consolidates this type of assets as one of the asset class with greater potential within the real estate sector.
Thus, this type of accommodation already accumulates around 3,650 homes in Spain spread across 70 residential complexes – according to data from Informa’s DBK Sector Observatory. By geographical areas, cities that have a higher degree of asset penetration Senior Living They are Madrid and Barcelona, because they are also the ones that host the largest population in the upper segment of the pyramid. Between them there are more than 1,400 accommodations (according to the same source mentioned a few lines above).
Even so, unlike other types of more “traditional” residential assets with a longer history in Spain, whose demand is concentrated in the main Spanish cities, the assets Senior Living They are in demand throughout the entire Spanish geography – both in large cities and in smaller towns, but with good locations, especially on the coast –, so it is to be expected that their growth radius will extend throughout the entire the national territory.
However, despite the potential of this market in Spain, there is still a way to go to consolidate the sector, which presents a huge gap between supply and demand. Precisely this imbalance is one of the main drivers why in recent years the investment interest of Spanish and European actors has grown considerably and which, we hope, will remain at upward trend in the coming months and years.
This suggests that, despite the challenges that the real estate sector in general is facing, with special mention to global uncertainty –increased by a new conflict– and the rise in interest rates, when the situation stabilizes the fundamental solids presented by the Senior Living will continue to attract investment activity and it is expected that in The coming years will see an acceleration in market growth.
It is also important to highlight that, thanks to different factors such as climate, gastronomy or the level of quality of life and the services provided such as the health system, Spain has become one of the most attractive countries in the world to retire. It is estimated that, today, more than 300,000 senior foreigners have moved to our country to live and enjoy your retirement. And many more are expected to make the same decision.
Thus, one of the main interested parties in this type of assets will be foreigners who come from countries with a purchasing power greater than that in Spain and from countries with a climate more adverse to the Spanish one, who see our country as a good option for their retirement due to the low cost of these homes compared to their countries of origin and the better quality of life. With this context, and due to the lack of maturity that the market still presents, it is likely that in a first phase this type of assets will have a faster growth in those premium assets intended for a target client with greater purchasing power.
This creates a more versatile and varied market, since the needs of the national and foreign public are not the same. Spanish seniors prioritize larger spaces that are located in more central and well-known environments; On the other hand, foreigners are more inclined towards resorts or urbanizations further away from the urban bustle, prioritizing open spaces and common areas.
Precisely because of the interest that this type of assets arouse in Spain, ASG Homes has launched a division focused on Senior Livingwith the focus on developing, in the medium term, a platform in the main Spanish enclaves.
Other markets in Western countries such as the United States, Australia or the United Kingdom are already much more consolidated compared to the Spanish market. The demographic evolution that we have already mentioned previously, added to the purchasing power and financial security that seniors have, have generated a great interest among all players of the real estate sector in these countries, which have not been slow to see the long-term potential of this asset class. Without a doubt, a mirror in which to look at oneself for Spain.
With all Senior Living is a promising option in Spain, which poses significant challenges that require adequate planning by authorities and the private sector to ensure that there are enough quality options available for everyone.