The elderly care and elderly care homes sector is facing a great challenge for the future: the accelerated aging of our country’s population.
It is estimated that over the next decade, the population over 65 years of age will increase to 37% of the national population. Greater longevity and migratory flows of people are some of the direct consequences of this unprecedented increase.
This has created a clear need in the care sector and in nursing homes. There is a need for centers adapted to the new needs of people that guarantee the rights and dignity of their residents.
At Renta Corporación we are specialists in improving cities through transformation processes that adapt them to the demands of the new generations. To enter this fast-growing market, we have recently set up a Socimi together with the Dutch fund APG, dedicated to the management of residences for the elderly, Wellder.
In this article we will take a closer look at the main weaknesses and threats in the geriatric care sector and how Wellder will address them.
The main challenges for the future of elderly care homes
There is currently a huge mismatch between the supply and demand of places in nursing homes and in all services related to gerontological health. This is due to the significant increase in the elderly population and in the rates of dependency and age-related pathologies.
In conclusion, there are more and more elderly people, but with less autonomy.
In addition, the evident lack of funding does not allow for the expansion of the number of places or the adaptation of the centers to offer comprehensive and completely resident-centered care.
The traditional nursing home system has become obsolete, and a paradigm shift is needed in the care sector to ensure personalized treatment and individualized service. This is the only way to improve the quality of life and maximum wellbeing of the elderly.
Wellder is born to transform the care sector
With Wellder, we intend to take a much more social approach. Our priority is to anticipate the population’s demand by adapting existing centers and creating new residences for the elderly.
We want to ensure the highest quality standards in the field of health, well-being, and respect for the environment. We achieve this by implementing ESG criteria in the purchasing process as well as in the construction and renovation processes.
The company plans to invest in assets located in Spanish towns with more than 100,000 inhabitants, preferably in provincial capitals. The surface area of the centers will be between 4,000 and 7,500 m2 with a range of between 80 and 140 beds per residence. Thus, we plan to invest up to 250 million euros to create a portfolio of assets in the “senior care” segment.