The Senior Living market in Spain is experiencing unprecedented growth, driven by an aging population and the increasing demand for housing solutions tailored to the needs of the elderly. This real estate segment not only addresses demographic shifts but has also become a promising investment opportunity. With a projected investment of €3 billion by 2026, Spain is emerging as a leading destination for both national and international investors looking to develop innovative infrastructure for the elderly. At Arum Group, as specialists in real estate consultancy and management, we explore what’s driving this growing trend, and why it matters now more than ever.
Spain, with one of the world’s highest life expectancies, faces a major demographic challenge: by 2050, more than 30% of its population will be over 65. This trend is driving the need for specialised housing for older adults, a market that continues to grow but still faces a supply deficit to meet demand.
Senior Living is not just about providing housing; it represents a transformation in how older adults experience their later years, focusing on promoting independence and well-being for residents. These communities offer accessible environments with a wide array of services, including healthcare, recreational activities, sports facilities, and advanced technological solutions. The pandemic marked a turning point in the expectations of older adults, who now seek more digitalised, flexible spaces that support their autonomy.
The Forecast Report by architectural firm Gensler suggests that the future of the sector will revolve around the integration of technology, the decentralisation of services, and innovative architectural design. Meanwhile, real estate consultancy Savills highlights the increasing market diversification, offering options tailored to various locations, investment models, and local regulations.
Opportunities and Challenges in the Sector
Despite the opportunities, the sector faces several challenges:
- Scarcity of available land: The limited availability of land suitable for such developments complicates the planning and construction of new senior housing projects.
- Outdated urban regulations: Existing regulations are not yet aligned with the evolving models of Senior Living, creating bureaucratic obstacles.
- Shortage of experienced operators: Despite growing interest from investors, there are still few operators with the necessary experience to manage these types of assets effectively.
According to consultancy Próxima RE, Spain has the potential to establish itself as a leading European hub for Senior Living, provided it can develop the real estate innovations necessary to navigate these challenges. Achieving a balanced and sustainable growth trajectory will require strategic planning, ensuring the sector’s sustainability, quality, and its capacity to adapt to the evolving needs shaped by demographic changes.
