‘Cool’ retirement homes for older adults, a business with potential

By: Ángel Alcántara

The possible cancellation of the Affordable Care Act in the United States, better known as Obamacare, promoted by Trump, would force millions of retirees from this country to seek asylum in Mexico, which firms such as Belmont Village, Ballesol and Le Grand Senior Living, who invest in luxury retirement homes in ‘Aztec lands’.

The Mexican Association for Retirement Assistance (AMAR) estimated that there are about 3.9 million Americans who could seek asylum on Mexican soil by the end of 2050, encouraged by the low cost of living in the country.

Javier Govi, president of AMAR, assured that the current situation in the American Union with Trump made Mexico more attractive for Americans close to retirement.

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It estimates there are about 3.9 million Americans over the age of 50 who could seek asylum in Mexico by the end of 2050.

«The cost of living in the country is much lower, about 30 percent lower (than in the US). If you add to this the current policies of President Donald Trump, the depreciation of the peso against the dollar and the possible cancellation of Obamacare, causes a certain elderly American social class to begin to move towards our country,» said the executive.

In Mexico there are about a dozen residential real estate projects for older adults with high purchasing power, such as the one that recently opened in May of this year, Belmont Village -with monthly payments of between 50,000 and up to 80,000 pesos for its residents- or the Spanish Ballesol in alliance with Grupo Presidente in Querétaro and Santa Fe, in CDMX, in addition to Le Grand Senior Living, in Huixquilucan in the State of Mexico.

«Based on the studies that have been carried out, there is a very important potential for the national and foreign market. For today, in very conservative terms, a minimum of 250 projects are required that cover the services of independent living, assistant living and memory care in the country,» Govi ​​estimated.

In the national market there is also great potential, if one takes into account that the older adult population will triple in the future, going from 12.9 million to 32.4 million people over 60 years of age between 2017 and 2050, according to with figures from the National Population Council.

AMAR also calculated that of the total current population of Mexicans over 50 years of age, only 8.7 percent have the economic capacity to pay for one of these «luxury» houses, which is equivalent to about 9 million people.

«The demographic bonus that is coming in Mexico is an important factor for the development of this market, in addition to the fact that there are more elderly people with higher income possibilities through more elaborate pension programs, which allow a better life in this stage,» explained Pablo Espinosa, president of the board of the Casa del Bosque retirement firm.

There are currently 814 nursing homes and other residences for the care of the elderly throughout the country.

Patricia Will, CEO of Belmont Village, said that they see in Mexico an important market for this business segment outside the United States.

«Mexico is our first market in which we venture outside the United States since we see an enormous possibility in the country because it is a new market that has very few houses for the elderly. I believe that in CDMX we can make five more units of which we already have the second piece of land in Nuevo Polanco and we are still looking for a third in the southern part of the city and they would be ready in the next 7 to 10 years,» added the executive.

The firm has 24 retirement homes in the United States and in a second stage plans to open more centers in Mexican beach areas, focused on the foreign market.

While Mexicans tend to have fewer children, the inevitable is that more and more people will age, which causes the demand for diapers for older adults to grow at faster rates compared to the same product for babies.

Production and sales value of adult diapers are growing at a faster rate than disposable baby ones. Only last year they ended with an increase of 13.3 and 17.8 percent, respectively, compared to 2015, reaching 499 million 830 thousand units produced with a value of one thousand 903 million 404 thousand pesos.

In contrast, diapers for children registered a drop in their volume of 1.9 percent and an advance of just 0.2 percent in their value, according to the INEGI monthly survey of the manufacturing industry.

Original Article: https://www.elfinanciero.com.mx/empresas/sin-obamacare-jubilados-de-eu-buscarian-asilo-en-mexico/

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