Care apartments for private investors
Care properties as an investment
With a care apartment, you buy a unit in a care home that an operator leases on a long-term basis. We explain how the model works and what to look out for before you buy.
Buy an apartment that an operator leasesHow the model works
A care apartment is a residential unit in a care home. You buy the apartment and a share of the communal areas. An operator leases the building and provides the care. You do not need to find tenants, sign contracts with residents or organise day-to-day operations. Leases often run for 20 years or more.
You are entered in the land register as the owner. The apartment belongs to you like any other condominium: you can bequeath it, give it away, sell it or mortgage it. You invest in a specific property, not in a fund.
What you can expect as an ownerWhat speaks for a care apartment
Whether each point applies depends on the project and the operator agreement. We review them with you based on the documents.
Long-term lease
The operator usually leases for many years. This makes your income easier to plan than with a conventional residential letting.
Little management effort
The operator handles finding residents, changes of residents and the care operation. You have no direct contact with residents.
Indexed rent
Rents are often linked to the consumer price index. If the index rises, the rent can be adjusted.
Shared maintenance
Depending on the contract, the operator covers a large part. Roof and structure are often the responsibility of the owners’ association.
Tax depreciation
Depending on the project, depreciation may be possible, for new builds also under § 7b of the German Income Tax Act (EStG). Individual tax advice is required.
Priority placement for relatives
Depending on the operator and project, you and your relatives receive priority placement if you need a care place.
How the need for care is developingSource: Federal Statistical Office of Germany (Destatis)
Demand for care places is rising year after year. Demographic change means that modern care facilities are among the fastest-growing markets in Germany. Investing in a care property means acquiring a tangible asset with long-term agreed rental income.
Care properties combine return potential with social value: you build wealth while creating urgently needed living space for an ageing society.
Long-term care statistics 2023 (press release no. 478 of 18 December 2024) and long-term care projection (press release of 30 March 2023), figures rounded.
- 5.7 mpeople in need of care in Germany, end of 2023
- 800,000of whom in full-time residential care, end of 2023
- 6.8 mpeople in need of care expected in 2055
- +37%increase by 2055 compared with 2021 (projection)
