International capital returns to German senior living

International capital is returning to Germany’s senior living market, according to Alexander Fröse, managing partner and founder at Periskop Living. He estimates that 320,000 additional units need to be built by 2030, creating opportunities despite challenging financing conditions.

Speaking with Richard Betts of Real Asset Media at EXPO Real 2026, Fröse contrasted the renewed international interest with a more cautious domestic investor base.

“Domestic investors are still, from a capital perspective, a bit more conservative. I think this will slowly come back again as well.”

An ageing population is encouraging investors previously focused on offices and retail to reconsider senior living’s place in their portfolios. Alongside financial returns, Fröse sees an opportunity to meet a growing social need.

Germany’s fragmented market provides scope for consolidation. Operators generally do not own their properties and want to expand, creating an opportunity for real estate investors to support their growth and help improve efficiency.

“Because there’s higher efficiency, there’s better cost structures that they can have in place if they have the right partner on the PropCo side, on the real estate side as well.”

That approach requires a relationship extending beyond a conventional lease. Fröse argued that investors could help consolidate the sector by treating leading operators “as a partner and not just as a tenant”.

“And that’s what we’ve been doing for 10 years, and it’s working out quite well,” he said.

For international investors, familiar cities such as Munich, Berlin and Hamburg are only part of the opportunity. Assessing smaller locations requires detailed analysis of the surrounding population and how demand could develop over several decades.

“If you take a lease agreement with an average of 20 to 25 years, you want to make sure that this operator actually is really operating in the next 20 to 25 years if you’re a serious investor, not a, let’s call it, buy, fix and flip investor,” he said.

Parts of eastern Germany present particular challenges, with pension incomes needing to be assessed against operators’ cost structures. Investors must therefore examine both the property and the operating business closely.

An operator willing to share detailed information can help establish whether a location is viable. That scrutiny can also reveal opportunities in smaller catchment areas that larger operators or investors may have overlooked.