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4 de June de 2018
An area that is picking up real interest from capital investors is alternative assets, specifically student housing and homes for the elderly. This is growing phenomenon that has consolidated itself in the market and now calls for specialised services that are tailored to these sectors.
Alternative assets are part of a sector that is now gaining particular interest from capital investors, specifically student housing and homes for the elderly. This growing phenomenon has started to consolidate itself in the market and now calls for specialised services that are geared towards such sectors.
Investment strategies are now changing as people look for assets with better profitability indicators than the typical retail, office, residential and logistics assets.
Sectors linked to health care such as homes for the elderly, holiday resorts, hospitals, or properties geared specifically towards healthcare are becoming more attractive to investors. Student housing, which has traditionally been associated with universities themselves, is an area showing real potential that has not gone unnoticed by international investors.
The expansion of such assets is not exclusive to Spain. Across Europe, alternative real estate assets are gaining ground, and they now make up 15% of the sector with an increase being forecast.
Spain, destination of choice for Erasmus students. Spain is the first-choice destination for European universities that take part in the Erasmus program. Students choose Spain for economic reasons, as well as quality of life and the desire to learn Spanish.
Institutional support to bring in foreign students. The portal Study in Spain was created in order to favour the internationalisation of Spanish educational services and encourage educational tourism in Spain. Insufficient number of residences. There is an imbalance between supply and demand for spaces that are made for students. Spain has one of Europe’s lowest numbers of students living in halls of residences, some 7% compared to 15% in other European countries.
Management with a margin for professionalisation. These alternative assets are not usually professionalised and will need better management in order to deal with growing demand.
Demography, a key factor. The progressive ageing of the population and increase in life expectancy is increasing the demand for beds in accommodation for the elderly. Gesvalt’s own data shows that between 250,000 and 300,000 new places will be needed over the next five years.
Baby boomers reaching retirement age. Another vital factor in this sector’s potential is that the baby boomer generation are now at retirement age, this means that this segment of society will start retiring around 2024.
Europeans moving to the Spanish coast to retire. Our country is used as a reference point for European retirement destinations. This trend of European retirees has several explanations: good climate, geographic location, low cost of living, developed health system, infrastructure, great recreation and leisure options.
State regulated dependency spending. The data shown above is leading to increased pressure on health systems and social protection. The kind of spending control from the government will help to maintain the sector’s profitability linked to services for the elderly.
Real Estate Investment Trusts, known as REITs in the UK and as SOCIMIs in Spain, are now becoming a real driving force in the market. The search for efficient management in these investment vehicle properties is leading to the creation of specialised assets using deep market knowledge which allows for anticipation and determining where investment will be made.
Gesvalt offers a complete consultation service for clients who are working with properties set to be used for student housing, homes for the elderly and healthcare related properties, both for promotors and owners as well as potential buyers. Find out more about our consulting services.
