The new property model involves the sale of houses to investors, at a discount, which allows them to be lived in until the end of the life of the elderly owner.

This real estate business, which is already very common in France and England, was imported to Portugal just four years ago, by Viager, which ended up following the French model. Not long ago, another concept emerged in this market with the launch of Empathia, which in addition to guaranteeing the purchase of homes for elderly people with usufruct rights, also invests in health and well-being services for this population, according to Expresso.

But how does this business model work?

Investors buy homes from the elderly, with discounts that can be between 30 and 60% and with the guarantee that the elderly person can live in the house until the end of their lives (the so-called right of usufruct), says the same newspaper. After the death of the elderly person, the property passes into the hands of the investor and descendants lose the right to the house.

For example, a house valued at €200,000 is subject to a discount depending on the owner's age and average life expectancy, and the house can be purchased by an investor (such as pension funds) for around €150,000.