Care Germany
In this section, we explore the German care market in 2024 and provide predictions for the sector in 2025.
Market Overview
The German market for care properties is currently marked by dynamic developments, offering both attractive investment opportunities and notable challenges. Driven by demographic shifts, the rising demand for residential care and senior housing continues to serve as a stable, long-term growth factor for this asset class.
A prime example of ongoing market activity is the Alloheim Group’s acquisition of the operational business of all 27 Katharinenhof locations. This transaction, encompassing over 3,000 care places for residential care and assisted living, and involving an investment volume of around €300 million, underscores strong confidence in the sector's long-term viability. Additionally, Alloheim has entered into 25-year lease agreements with Civitas Investment Management Limited, highlighting the long-term strategic planning and stability of this investment.
Investors are seeing attractive yield opportunities; care homes currently achieve yields ranging from 5.0 % to 7.0 %, depending on quality and location, while assisted living facilities offer yields between 3.5 % and 6.0 %, influenced by location and demand. Despite these favorable fundamentals, the market is experiencing a phase of consolidation. The transaction volume in Q4 2024 amounted to approximately €700 million, bringing the total annual volume to around €1.3 billion. Care homes emerged as the leading segment with over €400 million, while assisted living properties accounted for approximately €200 million. The analysis highlights that the second half of the year maintained strong market momentum. Well-positioned market participants successfully capitalized on opportunities, significantly contributing to the positive market development.
The demand also continues to focus on lower-risk investment options, particularly assisted living and medical office buildings. Investors are increasingly drawn to Core-Plus strategies, which offer a balanced mix of yield potential and stability. Overall, the care property market remains a solid yet demanding investment landscape, requiring thorough risk assessment and well-crafted strategies.
Marlon Schramm
Head of Healthcare Germany
Key Market Trends
As of 31 March 2024 compared with figures taken on 31 March 2023:
Rise in the number of people in need of care in Germany (2021–2055):
The number of people in need of care in Germany is expected to rise significantly by 2055. This increase highlights the growing demand for healthcare infrastructure and services. Investors should consider this demographic trend when planning for long-term investments.
Source: Statistical Office
Number of care facilities and services (2024):
Outpatient care services outnumber inpatient nursing homes, reflecting a shift towards community and home-based care. This trend presents opportunities for investments in outpatient healthcare facilities. As the population ages, the demand for these services will likely continue to grow.
Source: National Care Market Report
Market Predictions 2025
- The demand for high-quality senior living facilities will exceed supply, driven by an aging population and increasing expectations for quality
- The shortage of skilled labour will intensify, forcing operators to adopt technological innovations and implement strategic workforce planning
- ESG criteria will become critical for financing and valuation, necessitating extensive retrofitting of existing properties
- Investment in outpatient healthcare facilities will increase, reflecting the shift towards outpatient care models
- Regional disparities in care provision will widen, as rural areas struggle to attract investment and qualified staff
Major Transaction from 2024
| Date | Business | Purchaser | Details |
| Jan | Seniorenresidenz am Vechtesee | GMP Projekte GmbH & Co. KG, Vechtetal Pflege GmbH | Takeover and renovation of the property - care flats, serviced flats and a day care centre were created |
| Jan | Burgholte Seniorenwohnanlagen GmbH | Deutsche Seniorenwohnen GmbH, Euryale Asset Management | Takeover and succession solution for two care properties including assisted living in the southern Harz region |
| May | Seniorenheim Familie Gärtner GmbH | Luehrsen Investment GmbH | Takeover from insolvency proceedings. The facility consists of a full inpatient care facility and a day care centre |
| May | Pflege-Portfolio in NRW | Swiss Life Asset Managers | Takeover of the nursing home portfolio consisting of three different care facilities with additional assisted living units in North Rhine-Westphalia |
| Jun | Kurpark Residenz Haffkrug | Belgreen Capital GmbH | Takeover of the senior citizens property with structural extension to include a day care centre in Haffkrug |
| Jun | Haus Linde Senioren- und Pflegeheim | Carestone Group Gmbh | Takeover of the care property in Wolfshagen with 67 fully inpatient care places |
| Jul | Nursing home Portfolio | IMMAC group | Acquisition of two nursing care properties, one of which also offers assisted living in North Rhine-Westphalia |
| Jul | Senio plus Seniorendomizil | Threestones Capital Management S.A. | Takeover of a fully inpatient care facility in Baden Württemberg. The facility was completely renovated in 2022, and a new building was added |
| Oct | Katharinenhof-Gruppe | Civitas Investment Management Limited | Acquisition of the Katharinenhof Group, consisting of 27 care facilities in Berlin, Hamburg, Brandenburg and Saxony |