European Healthcare Real Estate Interface

What is the relative scale and nature of demand across Europe?

Rising elderly populations and growing healthcare expenditure are both core demand drivers for healthcare services and healthcare real estate, including long-term residential care facilities. Explore which markets have the strongest fundamentals using the map below. Click on a country to see more details relating to population and health expenditure.

• European healthcare investment reached €2bn in Q1 2025, up 50% compared to the same period last year, although still 27% below the 2020-24 five-year average. Transactional volumes were boosted by a number of large deals in Germany, Spain and the UK. Deals in the €250m-€1bn bracket accounted for 49% of the Q1 total. Investment in this bracket was 10% higher than the five-year average, reflecting a range of domestic and cross-border purchases from government, institutional buyers, fund managers and listed companies.
• The care home sector attracted the majority (76%) of investment, although investment in clinics has risen 80% from the five-year average. The UK was the largest market at 37% of the total, with a variety of sectors attracting investment, followed by Germany at 29%.
• The average blended European care home yield has stayed stable for four consecutive quarters, supporting increased investor demand and larger portfolio sales. Normalised inflation, interest rate cuts and a positive outlook have led to yield compression in Sweden and Spain in the past year.

How do these compare to other sectors? Understand pricing levels across mature and growing markets.

Compare prime net investment yields for care homes across Europe in the following visualisation. Prime yields relate to well-located, modern quality stock, let on long-term institutional leases to high quality operators.

What are the key transactions in each market and who do they involve? See the deals and key players influencing this growing market.

Who is operating care homes? Recognise which companies are market and European leaders.

Care home operations can be fragmented in many European countries, though there are major players operating across markets. The table below identifies some of the major care home operators by geography and their ‘in-country’ revenues from the last two years. Use the search function to see which operate across geographies, or to focus on a specific country.

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