In recent times, Portugal has undergone significant demographic changes that are influencing the real estate market.
The aging of the population, the migration of foreigners, who are generally people over 60 and looking to come and live in Portugal after their retirement, as well as changes in demand preferences are transforming the way buyers look at properties, as well as the offer itself. In addition, the concept of “Senior Living” has been gaining more and more prominence, revealing itself in new opportunities and challenges for the real estate sector.
Portugal has a very aging population, currently being the country in the European Union with the fastest aging rate. In the last 10 years, the average aging in the European Union was 2.5 years, while in Portugal it was 4.7 years, according to Eurostat. Forecasts show that this number is expected to continue to rise – the current situation is the result of several factors, which have already been felt for several years, mainly the drop in the birth rate and the increase in average life expectancy.
Consequently, the demand for dwellings adapted to the needs of the elderly is growing a lot. This type of buyer looks for housing that offers security, accessibility and support to deal with the physical and health challenges that arise at this stage of life. This demand represents an opportunity for the real estate market, which has been adapting and offering innovative solutions, such as “Senior Living” spaces. On the other hand, with the increase in demand for these alternative segments, it is only natural that more dwellings appear on the market for sale because, when opting for assisted housing, the elderly no longer need their housing and can sell it.
Real estate professionals have been making the “Senior Living” segment grow significantly in Portugal. “Senior Living” spaces, such as homes or specific communities, are a win-win opportunity for both the elderly population and property developers. These adapted spaces aim to combine the security and comfort of a home with the dignity and privacy of a private home. They are spaces designed to allow autonomy to buyers who, in most cases, are accompanied by special care services such as nursing and physiotherapy, as well as cleaning, laundry and security services.
On the other hand, and in a scenario of exponential ageing, the aspect of immigration of foreigners to our country has also been contributing to the dynamics of this demography. According to data from PORDATA, births in Portugal have fallen by 25.1% in the last two decades. On the other hand, according to INE, in 2021, 14% of babies born in Portugal were from foreign mothers. However, despite Portugal having a fairly high immigration flow, this also includes a portion of foreigners who see our country as a destination for retirement, so that, despite immigration being counteracting the growth of the aging rate, it maintains considerably higher than other EU countries.
This phenomenon that the real estate market has been witnessing is interesting, as the demographic changes in a country bring new trends and challenges to an entire industry. By understanding and responding to new opportunities in the community and society, we keep our country, its economy and real estate market dynamic, proactively attracting more foreign investment.
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Source: Hugo Santos Ferreira - President of APPII
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