Portugal, and especially the Algarve, gathers all the conditions to be one of the strongest destinations in Europe for senior living. But it’s a relatively unexplored market, according to a study released recently by Savills.

“The search for better living conditions by senior citizens and an increase in average life expectancy has resulted in the exploration of a business opportunity in Portugal: the focus on senior living, homes adapted for the senior population that offer a range of differentiating services that distance themselves from ordinary homes for the elderly,” said the report by the international real estate consultant.

It’s a great market opportunity for the Algarve, which was recently named the best place to live in retirement by Forbes magazine (see more here). However, according to Savills, while the region has the highest growth in the elderly foreign population, it has far fewer suitable facilities compared to Lisbon and Porto.

Foreign investment

“The purchase of housing by buyers over 65 years of age may represent an interesting opportunity for the senior living segment, based on the market fundamentals that put Portugal at the forefront of more attractive countries to spend retirement years,” noted the study.

Savills continued: “For this age group, which aspires to live its golden years actively, the investment in residential units may revert to residential units within senior living concepts, either for people with total autonomy or for people who may need services and medical care.”

While the volume of investment is still far from that in more mature European markets, Portugal gathers “the variables of success” to attract investors in the senior real estate segment.

A growing market

In the report, Savills identified 64 senior residences across the country that fall under the concept of private residences and that are different to traditional homes for the elderly.

As well as ensuring a diverse set of healthcare-related facilities, such as physiotherapy rooms, pharmacies, nursing services, individual plans and geriatric care, these residences also offer other facilities that ensure both physical and mental wellbeing, such as swimming pools, ballrooms, restaurant or cinema rooms.

The Algarve Home Sales team is always available to provide any advice on investing in Portugal. Get in touch with us here to find out more about a retirement in the sun.