Strong growth in investments in senior residences

Strong growth in investments in senior residences

According to data from ANGOMED, the aging rate in Spain keeps breaking records and has already reached 120%, which means that for every 120 people over 70 there are 100 under 16. But this number will not stop growing in the coming years.

This consultant states that the investments related to the sector are having a boom in the country and have increased by 25%. In Spain, in the last 3 years, the number of investment funds and private companies that have been interested in the geriatric sector has grown. Last year alone there were more than 100 acquisitions of residences and lands or buildings to build senior residential centers.

Juan de Dios Punzano, general director of ANGOMED explains that «investment in a senior center is a business increasingly requested by construction companies and owners of unexploited lands or buildings due to its high profitability. It is a recurring business with fixed and recurrent revenues that offers profit margins of up to 6% and with a very low NPL rate regarding other investments. In addition, demand will rise every year since the ageing rate will not stagnate».

On the other hand, from ANGOMED it is emphasized the existence of a strong international market that is agitating the sector of senior residences in Spain. "If there was little demand for seniors Spaniards, now there are many foreigners who choose our country to live at that stage of life," explains the CEO of ANGOMED. Investment funds are searching for residences to cover this foreign demand.

According to ANGOMED, there are currently more than 2,000 senior residential centers in our country. In communities such as Madrid or Barcelona there are centers that exceed 400 beds.

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