Senior living in Spain has an investment pipeline of €500 million in the domestic market, with a total of 3,229 units planned, according to data from the latest Atlas Real Estate Analytics study.
Specifically, the new supply is distributed in various locations: Malaga tops the list with four assets and a total of 1,694 units, followed by Madrid (four assets, 562 units), Santa Cruz de Tenerife (one asset, 298 units), Alicante (two assets, 262 units) and Barcelona (one asset, 209 units).
Currently, the supply of senior living in Spain totals fifty operational assets, with a total of 3,785 units. Therefore, the pipeline of new confirmed assets would represent an increase of 85.31% over the current supply.
The current supply of senior living in Spain reaches fifty operational assets with a total of 3,785 units.
The main urban areas account for a large part of the market, with 2,447 units located in large cities, 64.6% of the national total. Other locations include Madrid (thirteen assets, 1,266 units), Alicante (seven assets, 943 units) and Barcelona (eleven assets, 626 units).
A large block of the current assets is specifically aimed at international demand, reaching a total of 1,338 units, representing 35.35% of the total supply in Spain, centred on the following locations: Alicante, Malaga, Tarragona and Almeria.
"As has been demonstrated with student residences and other assets such as the BTR, currently on standby due to macro issues not inherent to the property itself, the population and economic dynamics point to senior living being an asset class with a long trajectory; both national and international demand are growing and Spain is in a privileged position to attract more demand for medium and high purchasing power," says Alejandro Bermudez, CEO and co-founder of Atlas Real Estate Analytics.
Alicante, Malaga, Tarragona and Almeria are positioned as reference places for the international public.
The Atlas Real Estate Analytics report also focuses on demand, which is growing not only because of the ageing population, but also because of the growth in purchasing power in this sector: 494,806 seniors are above the target purchasing power in the five main provinces of Spain. The five largest cities in the country, with their respective metropolitan areas, are a good example of the potential of the senior living market in Spain, especially for the local demand segment. Madrid and Barcelona are the largest markets, both in absolute terms of demand and in economic terms of purchasing power of the target public. In second place come Valencia, Seville and Zaragoza, with the latter having the highest average purchasing power of seniors and Valencia having the highest local demand. In terms of international demand, the European Union is the main source market for foreign seniors moving to Spain, with a majority in 90% of the provinces compared to the rest of the nationalities. However, the southern Mediterranean provinces, together with Huelva, receive more seniors from third countries than from the European Union. Among these provinces are precisely Malaga and Alicante, the two main coastal markets for international seniors in Spain, with a large international community already residing there.