In a society where 70 is the new 60, why limit ourselves to traditional living setups? Senior Living Spain introduces a variety of inventive housing models that address this question, ranging from full-service community designs like Cohousing to coastal resorts with personalized services. Despite the myriad of opportunities, this sector remains largely untapped. Unlike the United States, which boasts purpose-built communities catering to this demographic, Spain has much less to offer, barely tapping into 1% of its potential, mainly due to a shortage of specialized operators.
According to insights from real estate consultancy CBRE, the population aged 65 to 84 is poised to surge by 60% over the next three decades. With current housing stock falling short, the development of at least 280,000 co-living units is needed to reach a 5% coverage ratio.
Senior Living: what does the trend entail?
Senior Living goes beyond mere residential facilities for seniors; it encompasses a spectrum of real estate assets tailored to their needs, including housing, sport and wellness facilities, gastronomy, leisure amenities, as well as access to socio-health services. In essence, it comprises holistic architectural complexes fostering community cohesion.
Presently, there are three archetypal Senior Living real estate models, but the innovation potential is vast:
- Cohousing: Socially inclusive housing planned cooperatively, with shared ownership arrangements.
- Co-living: Developments designed for short or temporary stays, granting residents access to all services and communal spaces for the duration of their stay.
- Resort Living: Condominiums or residential complexes situated within sports or wellness complexes with exclusive perks for owners, typically sited in proximity to the sea or in regions with year-round pleasant climates.
What’s the current state of Senior Living in Spain?
Experts in the field who convened at the Sima 2023 Senior Living Forum all agree: Senior Living in Spain is still in its early stages, with plenty of room for growth. The market shows great promise, with around 15 operators poised to invest approximately one billion Euros in specific projects. Key players include Goya Real Estate, renowned for their Senior Living Resort in Alfàs del Pi (Alicante), already housing 300 residents, and the Layetana group, which recently debuted the upscale senior living community, Las Arcadias, in La Moraleja (Madrid).
Who’s the potential buyer of a Senior Living home?
Senior Living urban models target individuals seeking a quiet and uncomplicated retirement. Those aged 65 and above, who are self-sufficient or do not require permanent assistance, and who are looking to share time and space with people of their own age without feeling penned in or limited.
What’s the estimated investment required to boost the Senior Living sector?
According to data from the consulting firm Atlas Real Estate Analytics, the Senior Living sector requires an annual investment of €1.445 billion until 2030 to achieve the objective of five units per 100 individuals over 65. The company estimates that there may currently be around €500 million available to construct over 3,229 residential units, effectively doubling the current supply.
In terms of real estate innovations, Senior Living Spain is projected to become one of the most promising and attractive in a booming sector. While still evolving, it holds significant potential and is gradually revealing exciting projects across various regions of the country.
