4 September 2019
The world is ageing at a rapid pace as life expectancy increases, and birth rates decline. According to data from the WHO, the world’s population of people over 60 years of age will nearly double between 2015 and 2020. That fact, which may lead to a demographic crisis in large parts of the world, can be a boon to nice real estate operators.
Demand for beds in residences for senior citizens is growing inexorably, while supply remains tight. The WHO believes that the optimal number of beds in geriatric residences should account for 5% of the total population of senior citizens. Neither Europe as a whole nor Spain are anywhere near that figure.
Market analysts forecast that the principal actors in the sector could see their net earnings increase by 20% on average by 2020, compared to this year. In the year to date, European and American companies in the sector have seen their shares appreciate by 13%.
Original Story: elEconomista.es – Letizia Aragüés Cortés
Adaptation/Translation: Richard D. K. Turner