'Senior apartments: a real estate opportunity.'

There are more than 17 million people over the age of 50 in Spain. We have one of the world's most generous pension systems, which give them great spending power. This means that the only sectors that will grow in double digits are those that meet certain needs of this social stratum. "

Senior Living Fórum

This was the start of Senior Living Fórum, an event held in Madrid on living spaces for people over 65.

The first participant was Iñaki Ortega, a teacher and member of the Ageingnomics Board of Advisors of the Mapfre Foundation.

Ortega raised the basic question of how older people will live in a world where life expectancy is constantly''is growing - by three months every year - and where non-residential real estate is the primary and sometimes only source of savings, albeit a liquid one.

"Older people are increasingly willing to change homes from a certain age. Currently, according to our data, 40% of people over 50 are willing to move out of their usual place of residence, and that's the whole senior living proposition," Ortega pointed out.

According to the professor, there is a shift in trends in this sector of seniors: "The idea of legacy is changing. The new generation of seniors is no longer thinking about what they will leave to their heirs, but how to enjoy life. Specifically, 30% no longer worry about inheritance. "

In addition, Ortega said, this segment of the population is confident that they don't have'

Senior living is a new option for older people.

Senior living is a new option for older people.

Senior living is a new option for older people.

"It used to be that being old was a sentence or misfortune because you couldn't work and earn. That changed 100 years ago with pension systems. Spain is one of the places where the most changes have taken place. However, getting old today does not mean having poor health. Life expectancy in the population is around 83-84 years and is still rising. We are increasingly living in good health as well. On average, people under the age of 70 have no disabling diseases. If you reach the age of 65, it is very likely that you will live to 90," Ortega emphasized.

This fact, described by the professor, represents a great opportunity for real estate, develop housing''alternatives that meet the needs of healthy older people.

"There are at least 15 investors in Spain ready to invest in senior living. Each can contribute between 100 and 500 million euros, some even up to 1 billion. The demand is there, the demographics are striking. Some investors are exploring complexes focused more on the hotel model, while others are bringing residential real estate to the market," Nuria Bejar, national director of Healthcare at Savills consultancy, summarized at Senior Living Fórum.

This''The model is already working in other countries, such as North America. "There are 3,000 senior living communities in the US, the largest of which has more than 90,000 apartments. There, residents engage in various activities that they organize themselves. We need a company that will develop these clubs organically," explained Alejandro Crespo, Executive Partner at Silverspring. This expert notes that for a sensory apartment complex to make sense, it must have at least more than 500 apartments, otherwise the project will not scale.

The obstacles to developing senior living

The main obstacle to the development of senior living at the moment is regulation. The nursing home sector is highly regulated by the legislation of the autonomous''areas.

For example, it is the administrations of these regions that determine the number of medical staff per resident. "The number of physicians in a residence cannot be compared to the number in an independent apartment complex. Regional governments should align their regulations with these products," said Marta Gonzalez-Liera, a partner at the law firm Cases & Lacambra.

It is also unclear what category the land on which senior living is developed should have. Theoretically, and without taking into account the peculiarities of each locality, it can be a non-residential area intended for hotels, public facilities or even ordinary residential area where residential buildings are built. A partner of the law firm believes,''that catering and hotel activities may restrict the ability to stay there for long periods of time.