Le mie ricette per la real estate communityBrazil represents an exceptional development opportunity for ORPEA over the upcoming years given its size (over 200 million inhabitants), its health-focused culture, and its middle and upper classes with rapidly growing purchasing power.
In the sector of long-term care, conditions in Brazil are favourable for ORPEA’s development:
– very rapid population ageing: the population of over 80s is set to rise fivefold by 2050, from 3.3 million at present to over 15 million, double the growth rate of European countries
– a concentration of elderly people in regions with strong purchasing power
– limited supply with 100,000 beds (3,500 facilities), i.e. approximately 3 beds per 100 people over 80, compared with 20 in Europe
– a sector predominantly composed of small-scale, medium-quality operators and dominated by public-sector and not-for-profit players
– no regulations on day rates, which are entirely paid by the residents and their families
To date, 2,000 beds are already under construction in locations with strong purchasing power, including Sao Paulo, Rio de Janeiro, Belo Horizonte and Fortaleza.
Brazil offers large development opportunities, and ORPEA is actively preparing to ramp up its operations there, through both organic growth with additional construction projects and a few selective acquisitions of existing facilities.
This presence in a new continent located far from Europe, in a complex country, reflects several years’ groundwork by ORPEA’s teams. They have careful prepared the expansion in compliance with local standards and regulations. The Group now has the required organisation, control framework, development teams and infrastructure to succeed in Brazil.