Care Homes. Major opportunities in
a growing seniors
The increase in life expectancy and the resulting chronic conditions of the elderly will lead to a rise in the demand for social care services.
The public sector is struggling to meet the increasing demand of public places in care homes. This explains why the private sector is playing an increasingly important role to cover this shortfall. More private and government-subsidised beds are being offered to meet the needs of the elderly.
In 2018, the combined turnover of care home operators in Spain was up by 3.4%, reaching €4.5 billion. The turnover volume of this sector is high enough to attract investors and funds specialising in the healthcare space, andthe attractive returns that care homes offer, in addition to the long lease durations are generating interest among new investors looking to diversify their portfolios. We are witnessing major operators in the expansion phase who, in addition to growing organically, are ramping up their growth process by acquiring smaller operators with several operational care homes in their portfolio. This trend is driving a rise in mergers and acquisitions and, thus, a concentration among operators. Several operators are also buying land to build new developments in locations where a rise in fees and occupancy rates is expected.