In recent years, the real estate market has focused on a key segment with significant growth potential: senior living. This trend is rapidly gaining traction in Spain, as more people seek to maintain their independence without giving up the comfort and security they need as they age. Beyond traditional retirement homes or care centers, senior living encompasses a wide range of housing solutions for the elderly population, including cooperatives, housing with common areas, resorts, and apartments with multiple specialized services, particularly focused on health.
Spain is one of the countries with the highest life expectancy in the world, which has led to a significant increase in the number of people over 65 years old. According to data from the National Institute of Statistics (INE), it is estimated that by 2050, more than 30% of the Spanish population will belong to this demographic segment. With an aging population and increasing life expectancy, Spain is in a privileged position to develop this type of residential solution. As the population ages, the demand for specialized housing and communities adapted to the needs of the elderly, both in terms of accessibility and services, will continue to rise. Hence, senior living has become one of the market niches attracting more and more developers, investors, and managers.
2024 is shaping up to be the year of real estate investment in senior living due to population dynamics and Spain’s appeal to the international senior market. This forecast is not far off. The bet that developers are making on these types of projects is so significant that it is estimated that Spain’s senior housing sector will receive investments of €3bn in the next three years.
Ongoing senior living opportunities
Developers experienced in this segment are currently seeking agreements with operators and capital to launch such projects. Real estate companies like Aedas, Neinor, and ASG have created specific joint ventures and plan to invest more than 200 million euros on average in the short term.
Neinor Homes
Neinor Homes recently partnered with Octopus Investments—the largest investor in retirement homes and senior living in the UK—to develop real estate projects in Spain aimed at boosting this segment. The joint venture, owned 80% by Octopus and 20% by Neinor, plans to invest 200 million euros in a first phase, with the goal of creating the largest independent senior living platform in the Spanish market. Octopus has just opened an office in Madrid to continue its joint venture with Neinor Homes in the senior living sector.
Other players that have recently entered the market include Grupo Gimeno, White Investing, Topcal Investment, and MoZaïC Asset Management, companies that have decided to partner and invest around 100 million euros in senior living until 2026 through various projects on the Mediterranean coast.
ASG Homes
ASG Homes and Caser Residencial have sealed a strategic alliance to launch Olife Living & Share, an operator specializing in senior living assets. Their goal is to manage around 700 rental residential apartments in the coming years, with an investment close to 200 million euros as well.
Aedas Homes
Aedas Homes, for its part, plans to mobilize around 200 to 250 million euros annually in co-investment with partners. Among these projects, the firm aims to expand into new businesses, seeking growth in areas such as senior living, as well as affordable housing, co-living, or student residences. The developer estimates maintaining an annual investment of approximately 200 million euros in its own capital.
In conclusion, more and more players are deciding to embark on senior living projects due to their great potential in Spain. The country also has great appeal for foreigners due to its favorable climate, excellent quality of life, and solid healthcare infrastructure. This reality further opens the door to opportunities for developing senior living complexes that also cater to an international clientele.
With growing demand and the opportunity to create innovative projects, this segment represents one of the most promising trends in the Spanish real estate market today.
