This is one of the conclusions to be drawn from a study by Cushman & Wakefield (C&W).

According to the study, although the majority of the market is still dominated by non-profit institutions, the private sector is responsible for 25% of the available beds. “And the trend is for international investment to start gaining more weight in national senior residences – with prime yields for properties linked to the health sector estimated at around 5.75% in 2023, while offices and retail reached around 5.00% and 4.75%, respectively”, says the real estate consultancy in a statement.

The study concludes that countries like Portugal have “a lack of resources to cope with the rapid ageing of the population”. And it goes even further: 6.8% of people in Portugal are over 80 years old, more than the European average (6%). This figure is expected to increase over the years, with estimates that it could reach 12.7% by 2050.

Quoted in the note, Ricardo Reis, director of the Assessment & Advisory department at C&W, says that it has been clear that there is “a growing interest in the area of ​​senior accommodation” in the country, due to the demographic situation and the lack of supply.

“We believe that we will see an increase in private investment in the area, and this outlook is easily confirmed by the most recent figures: the volume of investment in real estate linked to the health sector in Portugal doubled from 125 million euros in 2020 to around 250 million euros in 2021, and in 2022 it began to decline to 115 million euros and, in 2023, fell below 20 million euros”, he adds.

For Ricardo Reis, there is no doubt that this sector is a crucial area for future investment. However, he warns: “The country must prepare for the growth in the number of elderly people in need of housing and offer them conditions that allow them to have a dignified life. The solution may involve the synergy and expansion of entities already present in the national market. However, a well-structured public plan to stimulate (incentives) public and private development will be necessary, combined with support for Portuguese families”.