The fact that Western human society is going through processes of demographic change is not new to anyone. In recent decades there has been a constant increase in the population living in urban areas along with a constant increase in life expectancy. These changes brought to the world new models for living spaces that were born to give solutions to the newly created problems. Among them are old people's homes, sheltered housing, geriatric centers and the like.
The 65+ residential model has captured a significant market volume in recent years in Israel and has become a thriving business field. The new model of sheltered housing combines elements of a hotel, alongside a variety of leisure activities and also a response to therapeutic needs. Such models are already well known in the United States, Japan and many European countries. As the sector grows and experience is gained, so does the appetite of investors in the field who are looking for opportunities.
Preferred investment areas - sheltered housing in Spain When we talk about the Spanish market, it is important to make a distinction between residences intended for Spaniards, and residences aimed at foreigners. These are different audiences and have different needs.
For the Spaniards, the priority in choosing the residential area is close to the living environment they are familiar with. Preferably near family and friends. The goal is to allow a transition to a new living environment, without disconnecting the person from the social and life circle he knew. It is important that it be a place that allows him access to all the places he is used to being, and to a wide variety of services in the field of entertainment and leisure. Basically we are talking about investments in urban areas with large population concentrations. There is a potential for great demand there, and also a population with a higher income that can afford the living conditions.
The main areas where we see the highest potential are Catalonia, the Basque Country, the Balearic Islands and Madrid - these are areas with large population concentrations and also a high level of income. Furthermore, in these areas we see that the older population has cultural diversity and embraces the style of shared living for the elderly in a stronger way.
The best investment areas for sheltered housing in Spain are found in places characterized by a large population of high-income adults:
Investment in protected housing in Spain Source - Savills
The second option is investment for non-Spanish adults. This audience is mainly concentrated in the coastal areas. Many come from Central and North American countries to live in Spain, due to the weather, the price level and other factors that make Spain attractive for them.
The foreign residents are looking for urban models, which provide them with services and activities, but do not require proximity to the big cities, their community or family. Therefore they have a tendency to cluster in coastal areas and islands. The concentration of foreigners is very large in these areas, and many of them who have reached the age of 55-60 have decided to stay in Spain permanently, or spend long periods of time there.
The interest in the golden age residences in Spain
Spain attracts a lot of attention for investors in the protected housing sector.
On the one hand, it has not yet crossed the psychological barrier of "those who go to a nursing home are going to end their lives soon" and therefore the number of beds in assisted living amounts to approximately 6,000 beds (as of 2023). But on the other hand, the huge market of the 48 million residents who have not yet made the cultural change to senior living is huge. Different from the sheltered housing sector intended for independent people. The nursing home sector in Spain for nursing situations is a sector Old and developed in Spain with no less than 360,000 beds, some of which are private and some are subsidized by the state - As we detailed in the previous article about the growth of the third age relative to the population.
Visit to a geriatric nursing home in Spain (next to a wall art now for the eyes)
Nursing home investments, sheltered housing in Spain
Spain - the future in integrated nursing homes.
By 2030, we will have over 8 million people in the age range of 65-79, that is 1.5 million more than today. And the growth rate of this age group is expected to continue to grow, reaching 9.6 million in 2040. There is an increase in life expectancy, and also the quality of life of this age group. We see seniors who continue to live independent lives, and strive to live life to the fullest.
These trends accelerate the development of new housing solutions for independent seniors aged 65 and over, and with physical and cognitive abilities. People at these ages are free from the need to take care of their children, and want to live their lives. According to the new models, the older population receives housing adapted to their needs, with a great emphasis on common areas that facilitate community life. As part of the residence, they are offered various services that correspond to their interests.
The local governments also understand the potential for the development of the region, and give various incentives to investors who work to address the problems associated with the demographic changes in Spain.