An increasing number of Spain’s 7.5 million over-65 year olds are flocking to such homes, which allow them to see out their days in luxury with the security that staff are always on hand to help. Demand looks unlikely to diminish—the government forecasts that by 2020, one in every four Spaniards will be over 65, making it one of the oldest populations in the world along with Japan and Italy.
Such a retirement doesn’t come cheap, however. A room in one of these homes can cost anything up to €3,500 a month, whilst the basic state pension in Spain stands at just over €700 per month. Nevertheless, construction is increasing at an explosive rate, as much-anticipated laws are expected to subsidise the industry whilst banks start to allow pensioners to use their property equity to pay for it all. “There isn’t a month that goes by without two or three new residences opening,” according to Rafael Navas of the construction firm Grupo Jubilo. “We’ve already got about 700 in construction nationwide at the moment.”
One example in Barcelona is the exclusive Euroresidencias chain of homes in Les Corts and Sagrada Familia. For double and single rooms ranging from €1,720 to €3,555 a month (excluding tax), residents enjoy an array of specialised facilities including a specially equipped gymnasium, resident psychologists, hairdressers and chiropodists, electronically controlled beds, laundry service, tailored food menus and 24-hour medical assistance. “We’ve only been open a month but places are being filled rapidly,” said director Francesc Lorente. “We’ve got around 50 rooms here with residents mainly aged 75 years and upwards, although hardly any foreigners as yet.”
Why is this boom happening now? Spain’s rapidly ageing population has stimulated the emergence of two key factors. One is the much talked about Ley de Dependencia—a bill that came into effect this year and pledges to subsidise serious dependants—those needing full-time assistance. However, the law will only benefit a relatively small percentage of Spain’s elderly. “Around 200,000 people will be able to apply, which is only around 15 percent of Spain’s 1.3 million dependants,” said Lorente. “Beneficiaries will receive around a 35 percent subsidy of their annual care bill. However, if the family can pay at least 90 percent of the costs, they will be ineligible. In theory, they could be subsidised to stay in one of high-end residences although this is unlikely.”
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