U.S. investors are increasingly targeting Western Europe for short-term profit opportunities in housing and healthcare, particularly in senior living and medical facilities.
Miami-based SPHERE Investments, a fund manager specializing in public health sector assets, recently announced that it has committed €200 million to the Spanish market over the next two years. The firm is focusing on housing and senior living but will also invest in healthcare centers, hospitals, and medical properties, capitalizing on Spain’s growing demand for industry-related real estate amid an aging population.
The demand for senior housing and healthcare services in Spain has surged, driven by an aging demographic and an evolving healthcare system. Investors like SPHERE are positioning themselves to capitalize on this trend, betting that properties tied to healthcare and senior living will provide stable, long-term returns.
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The firm’s planned investment in Spain also reflects a broader trend among U.S. investors turning to European markets for healthcare-focused real estate, particularly senior housing and healthcare centers. As Spain’s population ages, the need for quality care facilities is expected to grow, making these assets particularly attractive. Management at the firm said its approach to investing in the Iberian Peninsula combines short-term returns with a broader strategy to co-invest in and develop new healthcare properties in Spain.
News of SPHERE’s investment comes days after IPE Real Assets reported that Banco Santander’s LandCo and Patron Capital are investing €365 million to develop 1,350 new residential units across major Spanish cities like Madrid, Seville, and Barcelona. The country faces an acute housing shortage, presenting lucrative opportunities for investors with the right expertise. The first of these developments is expected to come to market in early 2025, signaling continued investor interest in both Spain’s residential and healthcare sectors.
As Spain’s aging population drives growth in both healthcare and senior housing, the residential market is also under pressure. The country’s housing market, like those in the U.S. and Western Europe, has seen a sharp rise in unaffordability since the pandemic.
Key economic indicators, such as the price-to-income ratio, have surged in recent years, with Spaniards now needing an average of 7.3 years of income to afford a home. This mirrors trends in other markets, including the U.S., Canada, and France, where the price-to-income ratio has more than doubled over the last three decades. As the gap between home prices and income continues to widen, the trend of rising rents in the multifamily sector is expected to persist.
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