Retirement Care & Leisure Communites
A Continuing studies show the further migration to the south of the ageing European population is now gathering with huge momentum. Aurore believes the infrastructure put in place to serve the tourist boom of the 1970s - 2000s and the haphazard development now dramatically advanced by massive EEC infrastructure handouts and budget air travel over the last 10 years, will lead to a phase of more sophisticated planned community development.
This European migration has occurred for similar reasons to the American migration south to Florida, California, Arizona and the Carolinas in the last four or five decades. The main contributing factors were:-
- Warm healthy climate;
- Purpose-built communities gave residents a chance to socialise more than ever before;
- Capital freed up by moving into small property ('down-scaling') because of access to communal services;
- Healthcare availability and security;
- General cost savings in daily life.
Similar to America we believe the European expatriate population, mainly consisting of British, Dutch, German, Belgian, French and Scandinavian nationals, want the following:-
- Ownership in a 'young', active community with a choice of recreational, hospitality and health services;
- Down-scale to a warm, relaxing environment to free up equity from valuable 'homeland' property;
- Shed responsibility for property maintenance;
- Ability to socialise with new social groups;
- Provision of support which younger family members cannot / will not provide;
- Discreet healthcare services and security;
- Generally enjoy a slower pace of living resulting in stress reduction and well being.
There is now an enormous amount of supporting data on the European ageing and migration phenomenon. This has been prepared by leading authorities and includes detailed studies, reports and on-going studies including the following:-
| European Commission - DG 12 | Wellcome Foundation |
| ICEX Madrid 'Health Tourism' | Region of Andalusia |
| The Nuffield Foundation | University of Zurich |
| Alliance & Leicester | Spanish Government |
| Sheffield University | British Consulates |
| Financial Times | University of Alicante |
| WHO report | Region of Murcia |
| German Embassy and Consulates | Leeds University |
| Region of Catalonia (Girona) | University of the West of England |
| Surrey University | Region of Valencia |
| Older People Abroad in Europe (OPAIR) |
Some of the main providers in the overseas markets are as follows:-
- A few Spanish chains of skilled nursing home operators such as Eurosar, Grupocare and Sanitas in Spain - these homes will continue to cater for very elderly dementia and higher acuity patients and are not regarded as direct competitors;
- Spanish planned residential developments and apartment buildings with housekeeping services and communal dining areas, including Arcadias, Sol Andalusia, Sensara, Spanish Living, Montebello, Mare Nostrum, Royal Care, La Cinyuena and Cuidad Patricia. Typically these consist of 80 - 290 units offering 'wellness' facilities and a limited degree of home healthcare;
- 'Naturally Occurring Retirement Communities (known as NORCs) such as Interpares in Malaga. A traditional residential development where the main purchasers were elderly Dutch who have organised their own nursing services. There are similar examples within the German community in Mallorca. Both these are instances of a reaction to the desire to age in place and maintain a maximum independence at home;
- Monte de Palagueira in Portugal;
- The advent of tax concessions and of personal long term care plans will encourage private pay in these settings Communications technology and low cost airlines will lead to greater flexibility in terms of where clients will live in relation to distance from their families;
- Investment funds will flow into the business once the scale and stability of the opportunity is recognised by the investment community (as has now happened with the equity model AARC in America);
- Significant growth in the elderly population with considerable financial security, which embraces 'ageing in place' and wish to re-locate from northern Europe into vibrant intergenerational settings where they can maintain independence for as long as possible;
- A need to downsize to free-up equity from the sale of their current property.
The evidence
2 million senior northern Europeans will move to the Costa Blanca over the next ten years.
'In the next 50 years, Spain will be the oldest country in Europe, with more than 30% of its population over the age of 65. Spanish women live on average 82.7 years, among the longest life spans in the world. The Spanish government says more than 100,000 seniors in Madrid were on waiting lists for nursing home beds in 2000.'
'Approximately 4,000 Swiss retirees above 55 years of age live on the Costa Blanca (Alicante Province)'
'By 2050 one in five people worldwide, or 2 billion, will be over 60.'
'In 1950 there were about 50.6 million people over 60 years of age in Europe; by 1980 this number had increased to 81.9 million and, by United Nations estimates, it is expected to reach 103 million by the year 2000 and 139.2 million by the year 2025. This means an increase in the elderly population of 70% between 1980 and 2025, whereas the general population will increase for this period by only 6.4%.'
'7.5 million senior northern Europeans will relocate to the coasts of Spain within the next ten years.'
'By 2020 British retirees will create a global market for goods and services worth in excess of €100 billion. It is estimated that 1 in 5 retire abroad and the favoured European country is Spain.'
Affinity Groups - Fishing
In evaluating the type of model most suitable for the European market Aurore has carried out detailed studies of the evolution of the American market:-
Over the last 10 years the emergence of AARCs has expanded. This is because:-
- The baby boomers are turning 55 (an American turns 55 every 30 seconds);
- Those in their seventies and eighties are staying healthier longer.
The AARC serves the five main requirements of this sector:-
- Outdoor property maintenance;
- Flexible housing options from villas to one floor living;
- Leisure and social activities;
- Ownership structures giving the financial benefit of home ownership;
- Discreet but excellent home healthcare and security.
A recent survey showed that 10% of all American households aged 60+ intend to move into a form of senior housing property in the near future. Of these 50% now choose to buy rather than rent. This explains why the equity (ownership) model AARC is gaining in popularity and the CCRC model losing favour with new buyers.
The following charts describe the main reasons for the move into 'senior housing' in America.
Below is a chart showing the attributes that distinguish the best properties and the greater probability of moving to a care-providing setting.
| ATTRIBUTE | INCREASE IN PROBABILITY OF MOVING IN |
| Dissatisfaction with current residence | 6 times |
| Visited an independent community | 5.4 times |
| Prefer age-qualified community | 3.7 times |
| Already live in senior housing | 2.7 times |
| Spouse is limited in some way | 2.5 times |
| Live in a semi-detached or multi-unit building | 2.3 times |
| More social than the average person | 1.9 times |
| Limited in some way | 1.8 times |
| Climb stairs to bedroom | 1.8 times |
| Neutrality on age-qualified community | 1.7 times |
The chart below shows the frequently made statement that adults who make the move into a community rarely regret it, in fact a staggering 92% of residents of these communities said they would recommend their community to their friends and a full 94% said they were satisfied with their community. We believe this will also be the case in Europe.
| AGREE | DISAGREE | |
| I am healthier today here than in my previous residence | 43% | 11.5% |
| MORE | LESS | |
| Proportion of residents participating in an exercise programme today compared to previous residence | 35% | 23.5% |
| Proportion of residents making new friends compared to previous residence | 51% | 7% |
| Proportion of residents seeing more of existing friends | 40% | 22% |
| Proportion of residents taking up new activities | 39% | 16% |
Aurore Group (Aurore) believes that the population migrating to southern Europe, whether indigenous or expatriate, wish to live in their own home for as long as possible, enjoying a sophisticated lifestyle with a high level of independence and participate in local cultures and activities. Numerous studies and reports, over a 15-year period, have confirmed this. This indicates that a planned 'active-adult' retirement community must avoid the stigma of an aged ghetto or a 'senior' label and promote itself to an indigenous and international, intergenerational customer base. Europe's largest growth market segment, the 65+ active adult, wants to remain just that ' active ' but with the knowledge that full healthcare, property and hospitality services are at hand should the need arise.
Philip Howard, the founder, has invested heavily in bringing the Aurore opportunity to this point.
Demographics and changes in market demand over the last 15 years in America truly reflect the evolution of the 'senior living' market here in Europe:-
Clients want to remain invested in property (rather than rent) even if it means downsizing;
- Top flight home healthcare services will cater for most clients' needs;
- Property and hospitality services must be excellent and must be reasonably priced;
- The proximity of public services including a general hospital, in addition to an on-site home healthcare agency and medical centre is an important 'comfort factor', especially for single, older clients (or their relatives);
- A range of services such as a business centre, meeting areas and club house open-to-all as well as all the usual property maintenance, security and housekeeping services are all important to the active adult market;
- Intergenerational communities are becoming more popular due to the growing phenomenon of two generations of resident retirees with differing needs.
AARC: Active Adult Retirement Community (the current American model)
An AARC typically consists of a mix of for-sale residential units ranging from multi-family villas, smaller villas, a mix of large apartments through to smaller apartments. Unlike earlier models an AARC is generally marketed to a customer aged 65+as opposed to 80+ with the earlier Continuing Care Retirement Community (CCRC). An AARC provides residents with an adult orientated lifestyle in a traditional residential setting. Recreational and healthcare services, including a medical centre and sophisticated security systems, form part of an AARC. An optimum size for an AARC may start at around 500 units and upwards, a golf course may form part of the community or be adjacent.
RCLC: Retirement, Care and Leisure Community (Aurore's vision of the European model)
Aurore has created the concept of an RCLC which is similar in many ways to the American AARC. Our planned RCLCs will total around 150 - 300 residential units from small apartments to stand-alone villas. We believe each RCLC could also form an integrated part of a larger, master planned, community combining on-site leisure activities such as golf courses and generally be situated close to an urban conurbation. Our concept is to attract an international, intergenerational clientele, as opposed to the age-restricted AARC, thereby avoiding the aged ghetto stigma. The Aurore home healthcare initiative will also reach out into the local community at an early stage. Our primary client market typically consists of the huge market of active adults who have decided to move to an RCLC because of the leisure, hospitality and other facilities whilst
not envisaging requiring the intensive care of a traditional nursing home but with the security of knowing care is at hand if required in addition to traditional second home buyers and retiring professionals. Our communities will embrace ageing in place and offer a full continuum of care. Our concept, as has successfully evolved in America, is for a purchase rather than rental option based around a strong home health agency - promoting continued independence.
IL: Independent Living
Typically a serviced apartment building offering a restaurant whose residents do not need assistance with everyday tasks. This option is for purchase or rental.
AL: Assisted Living
An apartment or studio for rental whose residents, perhaps triggered by an 'event', need 'Assistance with Daily Living' (ADL) (i.e. bathing, dressing, toileting, preparing meals, taking medication etc.) but with an emphasis on prolonging independence.
SN: Skilled Nursing
A single or double-bedded room whose residents need a significant amount of ADL and intensive nursing Assistance with emphasis on caring for dementia patients.
ExtraCare
A term now used for additional care services, often provided under the banner of Home Healthcare or Domiciliary Care Services.
Contact Details
info@activeadultretirementcommunities.co.uk