There are 5,800 elderly care facilities in Spain and only 7 senior living projects still underway. The pace is slow, yet the concept remains alive. Senior living refers to a broad range of asset types and experiences designed for older adults who do not require full-time residency, from luxury resorts offering all services to social hubs where seniors connect over shared concerns. There is no single model, and demand is steady, says Nuria Béjar, national director of health care at a leading real estate advisory firm.
The market holds significant weight in Europe, with more than 4 billion euros mobilized in investment during the first half of this year alone. It has become a popular segment in the property sector, with activity rising around 38% above the five-year average. The strongest players include mutual funds, pension funds, investment managers, real estate investment trusts, financial institutions, and developers, according to a major consultancy report. In the early period, residential properties accounted for 55% of all socio-sanitary assets traded, while 11% were senior housing across Europe.
In Spain, the senior living segment is not yet highly developed. As the population ages, the number of elderly people climbs. Nearly 80% are judged to be suitable for this model, meaning ongoing service options without round-the-clock guards are increasingly in demand, yet supply cannot keep pace. The industry leader at a prominent consulting firm notes confidence that the market will grow gradually, as senior living is a mature, stable product in other European markets. Spain is viewed as a country to watch, with strong opportunity ahead.
Early ventures in Spain began as coastal offerings for expatriates, but now urban, central locations are meeting national demand. The typical resident profile includes sophisticated users with high purchasing power who seek comprehensive services around the clock. A major developer argues that locals and foreigners should remain in separate models when cultures differ too much, underscoring the need for adaptable configurations within senior living.
Various investment models
Traditionally, funds and investment vehicles invested directly in nursing homes: acquiring or developing an asset, securing an operator, signing a long-term lease tied to inflation, and earning steady coupons. Returns were tied to metrics like euros per square meter and income per resident. In periods of inflation, the operator assumes most risk, not the owner. New approaches, however, blend steady income with performance-based elements.
A project proposed a blended exploitation model with variable performance linked to investment. Investors often react with caution to entry into a nascent, risk-heavy market. Fixed-versus-variable models were weighed, and variable structures did not perform as hoped in early tests. An analyst notes that the same model cannot be used for elderly living as for traditional residences or hotels; one model provides a fixed monthly income, while another features a larger variable component.
Space concept
It is important to recognize that senior living properties can include residents over 65 and may accommodate movement limitations. The aim is to make spaces feel natural. Services come with green areas and spaces where residents can meet. The experience focuses not only on the individual resident but also on the environment and visitors. Architects describe hybrid spaces designed to support activities such as yoga and learning, with the environment enhancing daily life.
Energy efficiency is a key criterion, especially for international funds. Many properties aim for green certifications such as LEED or other recognized standards. Nevertheless, energy policies pose challenges: some buildings close to conserve resources, and clear guidance on indoor air quality remains elusive. Residents and operators alike often do not actively pursue air-quality improvements despite the potential benefits.