EXPO Real 2026: consolidation offers opportunities in German senior living and healthcare

There is an opportunity in operator consolidation in the German senior living and healthcare sector, experts agreed at the Germany: Investable markets & opportunities panel at the International Investors’ Lounge at EXPO Real, which was organised by Real Asset Media and the SHHA.

“We see more M&A in the near future, that will involve medium-sized groups as well”, said Berthold Becker, Managing Partner, Orizn. “There is huge potential for consolidation to make operators more professional.”

At present the top ten operators represent 17% of the market and the top 100 have 40% of the market.

“The top player in Germany has a 4% market share, but in a mature market it would be 30%, which shows how fragmented it is”, said Johannes Rucker, CEO, KWA.

Scale would allow for operational efficiencies, panellists agreed.

“30% of operators have two facilities or less”, said Jochen Zerg, CEO, Immotiss. “Consolidation is needed. Of course there are good small operators out there but they might not be able to invest in tech and AI because of their size.”

Some small operators deliver very good service because they have a deep knowledge of the market. “Operating quality at a local level can be excellent due to local synergies”, said Liana Frank, Managing Director, TSC Real Estate Germany. “There are many hidden champions out there who deliver very good service.”

The other change that is needed in the German market is more harmonisation of rules and more flexibility. At present there are 16 different legislations for the 16 States in a highly regulated market.

“Regulation is important as it provides stability and reassurance but there should be more flexibility”, said Frank. It should be up to the local operator to decide what level of staff he needs to deliver high quality care to the patient, rather than it be mandated by some authority that does not know the situation on the ground.

“Investors want stability and consistency most of all”, said Andy Schwab, Partner, Möhrle Happ Luther, “if we want to improve our social infrastructure, we must make our case more forcefully to the authorities to speed things up.”