Investment in senior living: the new bet of the Spanish real estate sector
How often have we heard that forty is the new thirty? But what about seventy? Reaching retirement age shouldn’t mean giving up social or healthy activities—these are among the top priorities for today’s senior generation. For example, avoiding unwanted loneliness is one of the greatest threats to wellbeing and healthy aging at this stage in life. However, comfort, quality of life, and autonomy can also define this new chapter, thanks to senior living. Activities that encourage social interaction and prevent isolation, pleasant surroundings, and a wide range of services are what turn this type of housing into a real home for the silver generation.
But what exactly is senior living? It’s a residential model designed for people over 65, offering an alternative to traditional nursing homes. One of the main drivers behind the growing interest in this format is the aging population. According to Spain’s National Institute of Statistics (INE), 26% of the population will belong to this segment by 2037.
Spain as a Key Destination: Investing in Wellbeing
This model of housing and lifestyle allows for both geographic diversification and tenant profile variety, catering to both national and international demand. Climate, cuisine, leisure, and quality of life are more than just tourist attractions—they are now among the most desirable features for both foreign and Spanish citizens planning their “golden years.” Spain currently has just over 9 million retirees, of whom, according to the latest available INE data, 385,000 are foreigners, nearly double the number from fifteen years ago.
With almost 300 days of sunshine a year, this segment currently appeals mainly to foreign retirees, as interest in this type of housing has not yet taken hold among the Spanish population. As Colliers Spain explains, senior living is increasingly targeting foreign seniors who view Spain as a prime retirement destination.
Coast, city, or mountains—that’s the question. Sergio Arana, Head of Real Estate at Urbanitae, points out where demand is highest: “Undoubtedly the coast and major cities, just like in the residential sector. Tech hubs will also attract players from the flex living space.”
Opportunities for Investors: What the Experts Say
Investment opportunities in senior living are diverse, and demand for homes and communities tailored to this segment is on the rise. Colliers confirms this in its report on the healthcare and senior living markets, noting that the number of apartments available for this segment is expected to double by 2030, reaching 8,000 units.
While this is already a consolidated market in other countries, it’s still in its early stages in Spain. This makes it easier for investors to enter and benefit from the returns offered—among other reasons, due to low tenant turnover. “For us, it’s important that the asset is developed by a solvent promoter, operated by a solid company, and located in an area with clear demand potential. And of course, it must offer attractive returns,” says Arana.
From the development of new residential complexes to the refurbishment of existing assets—such as old hotels, nursing homes, or unused spaces—the return potential is promising. The combination of foreign interest, demographic trends, limited supply, and stable potential returns makes senior living a very attractive investment alternative. Urbanitae’s Head of Real Estate confirms: “From our point of view, this is a clearly growing sector. There are different variants: senior and flex living are not the same, but it’s clear that any solution adapted to the country’s sociological and economic reality is necessary. At Urbanitae, we’re seeing more and more activity in the living space, and we’ll definitely continue to invest.”
It’s important to keep an eye on the challenges and regulatory barriers that may arise, especially the need for clear regulations regarding the relationship between land use and the construction of these types of residences. Senior living falls under the category of community housing, as its purpose differs from that of tourist accommodation. Therefore, among other requirements, users must reside there on a permanent—not temporary—basis. “As always, the law follows reality. While today these assets are being developed on land zoned for tertiary use, we believe that, in the future, to meet growing development needs, more agility and flexibility will be required—without compromising legal certainty,” Arana concludes.
Another challenge lies in attracting and informing Spain’s silver population, who are more accustomed to traditional nursing homes or remaining in their homes well into old age. While growth is still gradual, interest in these healthcare-focused residences continues to rise. The concept of aging has changed—and the real estate market knows it.
