Senior Living attracts growing investment in Portugal

Assisted living homes for the retired elderly is attracting more and more private investors to Portugal according to a recent study from Savills.

A smorgasbord of factors have contributed to this investment in creating assisted living residences, including seniors looking for a better lifestyle quality and an increase in average life expectancy.
In Portugal, the majority of assisted living and care for the aged population is catered for by the so-called RSEPs (Residential Structure for Elderly Persons), more commonly undertaken in old people’s homes, institutions and charitable institutions for the elderly who possess a degree of reduced mobility and are in constant need for care and medical attention.
However, in recent years, the national market has seen the entry of private operators which are seeking to create private residences that are different from these RSEPs with more services and care and set up in places which greater purchasing power and larger population densities such as Lisbon and Porto.
According to Savills there are currently 64 such residences that fit this new senior living concept developed and run by the private sector.
Focusing on quality and innovation, these residences offer a complete range of living and leisure facilities and services including private suites, swimming pools, rooms for parties, laundry, restaurant and cinema.
In addition to leisure amenities, they offer health care services and facilities such as rooms for physiotherapy, beauty treatments, pharmacies, nurse services, individual plans and geriatric assistance.
So that all these medical services are available for users, the residences have signed various agreements with hospitals thereby assuring the quality of the available services.
Savills also points out that there are mixed models that integrate an offer linked to the National Network of Ongoing Care (RNCC).
Moreover, the Portuguese market already has some large private players such as the Grupo Orpea, Grupo José de Mello Residências, Grupo Luz Saúde and Grupo Residências Montepio.
And while recognising that the current pandemic may well lead to a rescheduling in terms of intentions to invest and expand, Savills tells Vida Imobiliária that there are several developers which are continuing to expand their models for senior residential products such as Montepio, Amera, Clece, Grupo BF and Grupo Mello.
Over the last 20 years, between 2000 and 2020, the stock of residential homes for the elderly increased by around 81% in Portugal with Lisbon and Porto the districts with the most RSEPs, representing 24.7% of the total beds offer at a national level; with 24,393 beds distributed over 618 residences.
The Algarve, because of its high number of retired overseas residents has a very high occupation rate compared to the Lisbon and Porto markets although with a lower number of available equipment. In Faro there were 84 residences in a total of 3,810 beds and an occupation rate of 95.4%.
And residences focused on the overseas population are a business opportunity identified by Savills, especially in coastal locations.
Furthermore, the purchase of housing by the over 65’s may prove an interesting opportunity for the senior living segment based on arguments that place Portugal in a good position when it comes to the most attractive countries in which to retire and spend one’s retirement years.
“Portugal has all the right factors for success to attract investors and well-known international operators and is in the running to be one of the strongest markets in this particular real estate segment,” concludes Savills Portugal.