The country will need an additional 55,000 beds in nursing homes to meet growing demand.
What’s up? According to a study by CBRE, more than 20 Portuguese projects targeting seniors are either under construction or under licensing. But even that’s not enough to meet demand.
In less than 30 years, more than a third of the population living in Portugal will be seniors. That’s about 3.3 million people – that’s plus one million to the current 2.3. To prepare for this demographic evolution, an additional 55,000 beds will be needed in nursing homes, making this an attractive opportunity for potential investors.
Context. Portugal currently has the third highest proportion of elderly people in Europe, and the situation is expected to peak by 2050. The rise in the number of retirees is exacerbated by the fact that while Portugal has one of the highest life expectancies in Europe, it also has one of the lowest rates of healthy seniors.
Challenges. High prices in nursing homes in Portugal are one obstacle to supply growth, according to CBRE.
Prices in private homes vary considerably depending on the medical care needed, the person’s condition and additional services. The average base price is about €1,200 a month, which is a lot compared to the average pension, which is €5,811 a year or €484.25 a month.
Portuguese retirees also face competition from foreign retirees, who generally have higher pensions. According to CBRE, the increase in the number of foreigners living in Portugal will provoke an increase in the supply of better quality residences for the elderly with a wider range of services and quality facilities.