Spotlight: Nursing homes market Germany 2016

Consolidation of nursing home operators on the increase – market growth continues

The market for nursing homes remains a growth market with 300,000 more beds required by 2030. However, the market is fragmented and the number of operators will consolidate further over the coming years.
French provider Korian has significantly expanded its market leadership with 3.1% of care places in Germany. The second and third largest providers, Pro Seniore and Alloheim, have market shares of 1.6% and 1.5%, respectively.
Surprisingly, the nursing homes of large private operators are often less well occupied than those of non-profit and church-based providers. The leader in this respect is Die Johanniter with 96.2% occupancy on the date of MdK inspection.
The investment market for care home properties registered a transaction volume of some €750m in the first half of 2016, which is more than in the whole of the previous year. The total by the end of the year is expected to significantly exceed €1bn.