Senior living, a private equity opportunity

There is no doubt that real estate investment in what used to be called 'senior residences', now reconverted into 'senior living', presents countless opportunities in Spain, given that it has become a rapidly growing market.

Longevity is a growing reality, and Spain is among the countries with the longest life expectancy and an increasingly ageing population pyramid. In this context, the demand for residential places and care solutions continues to increase; on the other hand, the available supply is still below the real needs, giving rise to a significant business potential for both private investors and large funds.

Despite the proliferation of centres in recent years, the residential park is far from meeting the current demand, even more so if we consider the need for medicalised or high care places. For this reason, investors are faced with a market opportunity that can be covered with quality real estate products, adapted to the needs of the elderly and to current regulations.

Moreover, the sector is less affected by cyclical economic fluctuations, as care needs are maintained (or even increased) in periods of crisis, which gives it enormous security and strength.

As the Risk Analysis Department of DEXTER its Director, José Enrique Chasserot, "The success of the projects is not only based on the construction or purchase of the property, but also on the care operation, on the specialised operator who takes care of what we could call the 'commercial exit' of the operation. We are talking about assets that tend to have, especially if they have a good location, optimal prospects for revaluation"..

DEXTER has been committed since its foundation to the real estate financing of those products which, according to the specific needs of the market, are clearly on the rise, such as 'senior living'.