Demand for senior residencies will surpass 200.000 beds in 2020

Demand for senior residencies will surpass 200.000 beds in 2020


Since 2010 around 30.000 new beds were made available through new developments, but, and despite the positive evolution, it is estimated that there is still a 100.000 unit deficit in Spain. At least this is what can be deducted from the report presented by CBRE.

Additionally, for 2030 there will need to be 200.000 more beds and 400.000 more in 2050, due to the predictions for an increase in the population over 65 which will grow from 19% to 25% during the next 12 years, which will also increase the number of beds needed for them.

In this way, between 2015 and 2017 corporate operations generated more than 200 million euro and according to Pablo Callejo, Alternative Sectors national director for CBRE España, «the sector’s maturity is making the market players focus on the operational activity while allowing the entrance of traditional real estate investors, particularly through sale & leaseback operations. Thus, during the coming years it is predicted for relevant corporate operations to take place in this sector».

Currently, the Spanish senior residencies market is still very fragmented, where the 7 main players only represent 17% of the total amount of beds. However, the big operators are involved in expansion processes. «During the next few months, the sector’s development will be characterized by the market’s professionalization and consolidation» pointed out Callejo.

Thus, as reflected in the report, these new institutional players will want to take advantage of the existing market niche which is yet to be fully explored. This market niche is that of Northern European senior citizens who feel drawn to Spain as a place to live off their retirement. 

«Spain is a very attractive country for the European senior population, because of its culture, climate, safety quality and relatively competitive prices. It all translates into very positive predictions for this sector and for the investment activity», commented Callejo.

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