By Kevin Beirne, Head of Retirement, and Cristina Perez-Liz, Head of Spain
Population ageing is a growing global challenge, but European countries have some of the highest life expectancies in the world.
By 2060, over 61 million people in Europe are expected to be aged over 801, with countries like Spain, Italy, and Switzerland among those with the highest life expectancies globally.
The baby boomer generation, long discussed as a demographic force, has now reached retirement age. Shaped by decades of progress and stability, baby boomers are entering retirement with the flexibility to embrace it as a more active and fulfilling phase of life.
This presents a powerful opportunity to focus on how we accommodate and support our elders —which has become a social and economic necessity.
Why ageing looks different for boomers
The baby boomer generation has benefitted significantly from post-war economic growth, widespread home ownership, rising property values, and generous defined-benefit pension schemes. As a result, they are more independent than previous generations, placing a high value on autonomy and social connection.2
Unlike for their predecessors, modern cultural and societal shifts are reshaping how this generation will experience ageing.
In the UK, where ageing in place is common, many elderly people continue to occupy their large family homes that no longer match their needs, properties that can be increasingly difficult to maintain and impractical as their mobility declines.
In traditionally family-oriented cultures like Spain, it has been common for elderly relatives to live with younger generations in the family home as they age.
But factors such as increased female participation in the workforce, rising divorce rates, and urban migration, has led to a decline in multigenerational living.
Unlocking flexibility to live better for longer
Positively, attitudes towards renting among the senior population are gradually evolving, with one in four over 65s in the UK expected to rent by 2040.3
More retirees are beginning to recognise renting as a way to unlock property wealth while still preserving inheritance, offering greater financial flexibility — opening up the option to move into built-to-rent senior living.
Retirement communities are able to maximise lifestyle and independence in later life, helping people live better for longer. Homes are thoughtfully designed, and help is available when needed, providing peace of mind for relatives and reducing pressure on public health systems. In the UK, the average resident in purpose-built senior living generates annual savings of up to £6,500 in NHS and social care costs.3
Community plays a vital role in longevity and is especially important to the baby boomer generation, as well as in many European cultures where social connection is deeply valued.
Spotlight on Spain
Spain’s senior living market is nascent, but growing demand is driving momentum — and the opportunity is vast. If just 5% of Spain’s 5.6 million senior living candidates moved into retirement communities, it would create demand for 280,000 homes, requiring €45 billion of investment.4
Foreign retirees have previously contributed to demand, particularly in coastal regions, and will remain an important part of the market, but future growth is expected to be led by domestic residents.
The middle market presents the greatest opportunity, offering the scale needed to accommodate the majority of the population seeking senior living. Key hotspots for development include Valencia and the broader ‘sunbelt’ areas, alongside major urban centres such as Madrid and Barcelona.
To unlock access and provide liquidity, some developers are offering innovative schemes that protect property wealth and inheritance, making senior living more financially accessible and appealing to a wider audience.
The role of private capital in scaling senior living
With the baby boomer generation now reaching retirement age, Europe faces the need to accelerate the delivery of senior living options, or risk drastically underserving our growing ageing population.
Private capital has a critical role to play by directing investment to help address this societal challenge. Institutional investors are increasingly recognising the sector’s potential, with 39% planning to explore opportunities in senior living within the next five years.
Those who move early have the chance to shape the market, set new standards, and deliver long-term social impact alongside financial returns. Investing in senior living can also align closely with ESG goals, making it a compelling opportunity for those seeking to combine profit with purpose.
[1] JLL Healthcare Spanish Market Update July 2025
[2] https://www.telegraph.co.uk/business/2025/01/25/boomers-33-times-wealthy-gen-z-gettin-richer/
[3] Knight Frank Next Gen Living, Solving the UK’s housing problem with housing seniors, 2025
[4] CBRE market analysis
