Real estate in Spain: popular among the elderly

In a context where 63% of Spanish households are facing economic difficulties to make ends meet, a property trend is emerging as a viable and attractive solution for the elderly. This involves the sale of bare ownership, a concept that allows owners to extract liquidity from their property without leaving it. This model is experiencing exponential growth, with a 200% increase over the past year, indicating a significant shift in the perception and utility of real estate among the elderly population in Spain.

Bare ownership

Bare ownership is a legal concept that refers to owning real estate without the right to use or enjoy its benefits, such as rental income. Essentially, the holder of bare ownership is the owner of the property but does not have the right to use it, meaning they cannot live in it or earn income from it. The right to use remains with the seller or a third party, allowing them to continue living in the property or renting it out, while the bare owner waits for the right of use to expire in order to gain full control over the property.

Sales and advantages

The sale of bare ownership provides sellers with additional income or a significant one-time payment, while allowing them to continue enjoying their home for the rest of their lives.

Buyers and investments

For buyers, acquiring bare property represents an exceptionally attractive investment opportunity. The chance to purchase real estate at a significantly reduced price, which can vary from 20-60% below market value depending on factors such as the seller's age, is an offer that is hard to ignore. This reduction in purchase price transforms into an investment with the potential for significant value appreciation in the medium to long term, making bare property a reliable bet for those looking to diversify their investment portfolio or secure assets with promising future income.

Social and economic impact

The sale of bare ownership not only brings specific benefits to individuals and families but also has a profoundly positive social and economic impact by creating a network of financial protection for the elderly. This practice serves as a link to addressing the complex economic issues faced by older adults, especially those who have encountered health problems, medical errors, and circumstances that affect not only their health but also their financial stability.