The European care market demonstrated resilience and strategic evolution in 2025, with notable developments across each country.

In the UK, investor interest remained strong, particularly from US-based funds, driven by structural innovations such as RIDEA management contracts. Transactional activity was buoyant across all asset sizes, while development lagged behind demand due to planning delays and high costs - though these eased slightly in the latter half of the year. Occupancy improved, agency reliance fell, and distressed cases declined by 22%, signalling improved trading conditions.

In Germany, demographic trends sustained demand, but rising interest rates and construction costs slowed new developments. Investors prioritised ESG compliance, operator quality, and assets with stable cash flows, while assisted living gained momentum, supported by social relevance and regulatory favourability.

France saw a strong rebound, with healthcare real estate volumes projected at €1.1 billion for the full year - nearly double 2024 levels. International investors and new entrants drove activity, while operators leveraged sale-and-leaseback strategies amid tight financing conditions. Despite limited supply, the sector’s appeal strengthened, underpinned by stable yields and renewed confidence.

To find out more about the care markets in these countries, click below.