Due to the political principle “outpatient before inpatient”, outpatient care services are experiencing enormous growth in Germany, as they are strongly advocated and supported. Especially in combination with assisted living facilities, operators of outpatient services are discovering an interesting market. There are currently more than 14,500 providers in Germany, and the trend is growing strongly.
The market for assisted living, or the even larger market for so-called “barrier-free or senior-friendly living” is literally exploding in Germany. Around 80% of today’s housing stock has barriers and is therefore not suitable for people with limited mobility, such as senior citizens. By 2040, Germany will lack more than 3 million barrier-free or barrier-reduced flats for people aged 65 and older. This presents opportunities for real estate developers, operators and investors. For example, numerous new forms of housing are currently being created that allow people to live much longer in their own four walls.
FULL INPATIENT CARE
Full inpatient care is a highly regulated market in Germany and differs significantly from the market for senior-friendly housing. There are currently about 818,000 places in about 14,500 care facilities in Germany, which means that about 1% of Germany’s population is cared for in a care facility, and the trend is rising. By 2040, the demand will increase by another 300,000 places, which corresponds to about 3,680 additional homes with an average home size of 80 places. At present, however, too few facilities are being newly built or converted because developers shy away from the regulations, among other things, and prefer to switch to “simpler” projects in other use classes.