32 | 55+ DEVELOPMENT WORDS |Margaret Wylde
BUSINESS Greek outlook
What does the future look like for the 55+ senior housing industry in Greece? In many ways, the country is an ideal destination with a beautiful landscape and a sun that shines for 320 days a year. It offers a safe, healthy lifestyle, lots of culture and low living costs. But a 17.7% unemployment rate, a recent history of civil unrest, and a central role in Europe’s economic crisis are all stifl ing development. So, what does the 55+ future looking like?
development engine to power its future overseas property industry for older investors if it: 1. Designs a 55+ attraction programme to target this ageing market sector - one that will contribute to the economy; and, 2. Assists developers and other businesses to create the products and services that this target market sector wants and will buy.
G
But it needs to get on with it fast. Greece needs jobs and money, which are the two prime ingredients that 55+ foreign households bring to a country when they purchase or rent a home for retirement or a second residence. And providing housing and services for the 55+ market sector is an excellent industry. If a 55+ Attraction Programme targets households with incomes of €60,000 or more, then each new household has the potential spending power to support at least two new jobs with average gross salary
reece has the ability and the natural resources necessary to create a great economic
of €29,160. This is also the average gross earnings of full time employees in Greece in 2009. And the primary benefi ts of creating a 55+ economic development programme are: 1. The target market migrants do not require jobs. They have already had their working careers. But they do bring transfer income into the economy. 2. It is a clean, non-polluting
industry. The target market sectors do
“55+ migrants do not require jobs, they have had theirs. But they do bring transfer income”
not travel on roadways during rush hour because they do not need to travel to jobs or school. 3. Because of their smaller household, the 55+ use less water, less energy and produce less waste. 4. The 55+ market sector will not tax the resources of the country to the same degree as a younger market sectors needing to educate their children. So,
Exhibit 1 Total Resident Population of Greece and by Age Groups Among 55+ in 2003 and 2011 Percent of Total Population
Age Group
Total Population Total 55+ Age 55-59 Age 60-64 Age 65-69 Age 70-74 Age 75-79 80+
2003
7,566,000 1,037,000 283,000 240,000 198,000 147,000 91,000 78,000
Percent of Total
2011
13.71% 3.74% 3.17% 2.62% 1.94% 1.20% 1.03%
Source: Eurostat
10,760,136 2,678,000 649,000 639,000 449,000 341,000 293,000 307,000
Percent of Total
the net effect is that the country gains a greater return on investment because of fewer required supportive services. 5. Households with incomes of €60,000 are likely to have had greater educational opportunities and often contribute to their communities and make them a better place for everyone. 6. Greece has the majority of the necessary infrastructure in place, and thus does not need to make an investment in the basic infrastructure necessary for the development of the 55+ industry. 7. Everything that Greece would do to become more attractive to the 55+ market sector, and to promote development of the 55+ housing industry, will make living in the country better for everyone. 8. The relatively small investment needed to develop this industry will have signifi cant return on investment. But do not think that this is a “build it and they will come” market. 55+ consumers are often people who have enjoyed a successful career and who have decades of experience living in
If you are interested in a country or are a developer of 50+ housing who wants to be included in an article about a specifi c country, please contact us via: Mark Jeff ery at mjeff
ery@promatura.com
and purchasing homes. They know what they want. A successful 55+ economic development programme requires planning. It will need to communicate well and ensure developers, real estate, service providers and tourism agencies are ready to deliver the product and earn the sale at a price they will pay.
Demographics of Greece The Hellenic Statistical Authority has released preliminary estimates of the 2011 Census of Greece. The survey puts the total resident population at 10,787,690. 49% are men and 51% are women. The “resident population” includes those who have lived in their place of residence for one year and intend to live there for at least one more year. This defi nition excludes a relatively large proportion
www.opp.org.uk | FEBRUARY 2012
24.89% 6.03% 5.94% 4.17% 3.17% 2.72% 2.85%
Beautiful | landscapes and safe, healthy lifestyles will help sell Greece to 55+ buyers
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