Post by account_disabled on Mar 12, 2024 7:43:48 GMT 1
The demographic structure of Spain, the second oldest country in Europe, drives the demand for new places in nursing homes. According to the report “Healthcare and Later Living: A countercyclical sector driven by solid demand fundamentals” prepared by JLL, to meet the demand expected for 2030, the stock of beds must grow by at least 190,000 places.
Growing demand, intensified by the aging Cambodia Telegram Number Data population in Spain and a rising life expectancy, faces a limited supply that offers investment opportunities in the development of new projects. To meet the growth in demand, JLL estimates that an investment of around €5.7 billion will be necessary in the development of 'healthcare' and 'later living' assets until 2030.
Precisely, the 'healthcare' and 'later living' segment, thanks to its countercyclical nature and its solid fundamentals, has aroused growing interest in national and international investors in recent years: the capital allocated to this type of assets increased at a growth rate compounded annual growth rate (CAGR) of 18% between 2018 and 2022.
Juan Manuel Pardo, director of Living at JLL Spain , said: “The 'healthcare' and 'later living' sector has been very attractive for investors in recent years. Although in the first months of 2023, caution has marked the behavior of the market; “The fundamentals of the sector in Spain and the growth in demand are expected to boost investment in the medium term.”
Great interest in the sector, although investors are more cautious
As a consequence of the increase in financing costs and the consequent decompression of yields, transaction volumes have slowed down in recent months . However, the attractiveness of the sector among investors remains and several land purchases have already been recorded in which to develop new assets. Madrid and Barcelona, Seville, Valencia, Malaga, Alicante or Murcia are examples where investors are currently developing new projects.
Furthermore, in the Spanish market there is a growing orientation of capital towards the development of new products in the hospital sector: private companies already control 28.5% of future hospital facilities; Although, today, 68% of hospital beds in Spain are in the hands of public administrations.
X-ray of the sector in Spain
Spain has one of the lowest coverage ratios (the number of places in nursing homes per 100 people over 65 years of age) in Europe : it stands at 4.1% and despite new developments, JLL estimates that this ratio will remain relatively stable until 2025 due to the aging of the population; which offers investment opportunities in various locations throughout the national territory.
The Autonomous Communities that show a greater imbalance between supply and demand, with coverage ratios below the national average (between 1.9% and 3.1%) are Andalusia, the Valencian Community, the Balearic Islands, Galicia, Murcia, the Canary Islands, Ceuta and melilla. On the other hand, the offer is broader in communities such as Castilla y León, Castilla-La Mancha, Aragón and Extremadura, with a rate higher than 6%.
Among the main metropolitan areas, Zaragoza and Bilbao show the highest coverage ratios, above the national average, while coverage rates in the rest of the cities remain between 2.2% and 4%, evidencing the current imbalance, with prospects of worsening in the coming years.
By area, the metropolitan areas of Madrid and Barcelona concentrate 18% of the total stock of beds and have 19% of the places in the project. On the other hand, more and more investors are focusing their interest on other urban areas for the acquisition of this asset class: Valencia, Alicante, Granada, A Coruña, Pontevedra, Asturias and Cantabria, where 35% of the agreements have been signed. operations in the last year.
Growing demand, intensified by the aging Cambodia Telegram Number Data population in Spain and a rising life expectancy, faces a limited supply that offers investment opportunities in the development of new projects. To meet the growth in demand, JLL estimates that an investment of around €5.7 billion will be necessary in the development of 'healthcare' and 'later living' assets until 2030.
Precisely, the 'healthcare' and 'later living' segment, thanks to its countercyclical nature and its solid fundamentals, has aroused growing interest in national and international investors in recent years: the capital allocated to this type of assets increased at a growth rate compounded annual growth rate (CAGR) of 18% between 2018 and 2022.
Juan Manuel Pardo, director of Living at JLL Spain , said: “The 'healthcare' and 'later living' sector has been very attractive for investors in recent years. Although in the first months of 2023, caution has marked the behavior of the market; “The fundamentals of the sector in Spain and the growth in demand are expected to boost investment in the medium term.”
Great interest in the sector, although investors are more cautious
As a consequence of the increase in financing costs and the consequent decompression of yields, transaction volumes have slowed down in recent months . However, the attractiveness of the sector among investors remains and several land purchases have already been recorded in which to develop new assets. Madrid and Barcelona, Seville, Valencia, Malaga, Alicante or Murcia are examples where investors are currently developing new projects.
Furthermore, in the Spanish market there is a growing orientation of capital towards the development of new products in the hospital sector: private companies already control 28.5% of future hospital facilities; Although, today, 68% of hospital beds in Spain are in the hands of public administrations.
X-ray of the sector in Spain
Spain has one of the lowest coverage ratios (the number of places in nursing homes per 100 people over 65 years of age) in Europe : it stands at 4.1% and despite new developments, JLL estimates that this ratio will remain relatively stable until 2025 due to the aging of the population; which offers investment opportunities in various locations throughout the national territory.
The Autonomous Communities that show a greater imbalance between supply and demand, with coverage ratios below the national average (between 1.9% and 3.1%) are Andalusia, the Valencian Community, the Balearic Islands, Galicia, Murcia, the Canary Islands, Ceuta and melilla. On the other hand, the offer is broader in communities such as Castilla y León, Castilla-La Mancha, Aragón and Extremadura, with a rate higher than 6%.
Among the main metropolitan areas, Zaragoza and Bilbao show the highest coverage ratios, above the national average, while coverage rates in the rest of the cities remain between 2.2% and 4%, evidencing the current imbalance, with prospects of worsening in the coming years.
By area, the metropolitan areas of Madrid and Barcelona concentrate 18% of the total stock of beds and have 19% of the places in the project. On the other hand, more and more investors are focusing their interest on other urban areas for the acquisition of this asset class: Valencia, Alicante, Granada, A Coruña, Pontevedra, Asturias and Cantabria, where 35% of the agreements have been signed. operations in the last year.