Care home investment rises across UK, Spain and Germany
Savills figures show foreign investment in senior living across Europe is growing.
2 July 2025
Figures from Savills show that European Care Home investment volumes have recovered over the end of 2024 and into 2025. Key areas for development are the UK, Spain and Germany.
Savills says that €1.76 billion was invested in the sector across Europe in the first five months of 2025 – above the previous maximum of 2021. Renewed investor interest is being driven by increased care fees and reduced financing burdens.
The Savills report notes that the UK will continue to be the most attractive care home market going forward, underpinned by strong pricing power, private-pay demand, and sizeable portfolios, providing attractive opportunities for investors. US REITs are acquiring UK REITs.
In Europe, Spain’s acute supply shortfall and low cost-per-bed offers investors good value and near-term growth, while Germany’s sizeable, insurance-backed market, supported by strong fundamentals and scale, is winning back investors as sentiment improves following recent operator distress.