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Retirement Homes in Germany - Market Research Report (2015-2030)

Maximilian Weikert Maximilian Weikert Frankfurt, Germany Last Updated: July 2025 WZ Q87.30DE

Revenue

€28.0bn

2025

€28.0bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

459k

Businesses

1,773

Wages

€XX.Xbn

Retirement Homes in Germany industry analysis

Homes for the elderly and disabled are an essential part of the healthcare system. Due to increasing life expectancy and the growing proportion of senior citizens in the population, the demand for such facilities is also increasing. In the last five years, turnover in the sector has risen by an average of 1.3% per year. However, the dynamic cost trend has recently put pressure on the industry's earnings situation and caused many industry players to experience financial difficulties, which has increased the risk of insolvency. Operators have been faced with rising costs for energy, accommodation and catering, which have not been sufficiently refinanced by the cost bearers.

Additional economic challenges are posed by rising personnel costs. For example, the parties to the collective agreement have agreed on further salary increases in 2024 in addition to an inflation adjustment. In addition, the changeover to the new staff assessment procedure means that skilled and unskilled staff will be factored into care rates. All of this is compounded by a worsening staff shortage, which is leading to lower capacity utilisation. To avoid getting into financial difficulties, the additional costs are largely passed on to the residents, while the care insurance companies' fees are barely adjusted. An increase in turnover of 0.8% is expected for 2025 compared to the previous year, bringing total turnover to 28 billion euros. One growth driver in the sector is the provision of alternative forms of living. Assisted living facilities have become increasingly popular in recent years. The high demand for this form of living means that flats designed for this purpose are being built as part of almost all new construction projects in the sector.

Over the next five years, IBISWorld expects an average annual growth rate of 3.4%, which means that turnover is likely to reach 33 billion euros by 2030. There is growth potential for the industry in the areas of energy efficiency, digitalisation, innovation and connected living. The positive development is likely to attract numerous new operators to the sector, meaning that the number of companies active on the market is expected to increase by an average of 2.7% per year until 2030. As competition intensifies, there will be an even greater focus on maximising profits and cutting costs, which may have a negative impact on the quality of care.

Trends and Insights

  • The demand for retirement home places is high and rising due to demographic change and the resulting increase in the number of senior citizens.
  • Alternative care services are particularly popular. Most people also want to live as autonomously as possible in old age, which is why assisted living is particularly popular.
  • Densely populated regions are popular locations for retirement homes, which is why most facilities in the sector are located in the centre region.
  • In many places, demand for retirement home places is outstripping supply. Nevertheless, industry players are competing for wealthy customers.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 1.3 % over the past five years, to reach an estimated €28.0bn in 2025.

Trends and Insights

Rising care costs and scarce capacities are worsening the social situation of senior citizens in need of care in Germany

  • Demographic change means that the importance of care for the elderly in Germany is growing continuously. Nevertheless, the financial commitment remains remarkably low in an international comparison. Germany spends just 1.5% of its gross domestic product on long-term care, while countries such as Denmark (2.7%) and the Netherlands (2.6%) invest significantly more. At the same time, increased costs for energy, catering and staff are exacerbating the economic situation of care homes and increasing the burden on residents. Since 2017, the co-payments for care home residents have risen by more than 600 euros, according to an analysis by the AOK health insurance provider.
  • Additional trends and insights available with purchase
Retirement Homes in Germany
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

The takeover of care homes by financial investors raises questions about quality and financial stability

  • The geriatric care sector in Germany is undergoing a fundamental structural change, as more and more foreign and private investors are buying up retirement homes. This development is being driven by stable sales, high demand for care places and secure state subsidies. The above-average returns offered by private facilities in particular make the market attractive to investors. However, private providers are repeatedly criticised for making profits at the expense of residents, particularly by cutting staff costs, which affects the quality of care and the working environment.

Biggest companies in the Retirement Homes in Germany

Company
Market Share (%)
2025
Revenue (€m)
2025
Victor’s Bau + Wert AG
440.0
Cidron Atrium SE
384.5
Emeis Deutschland GmbH
238.9

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Retirement Homes in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Care in retirement homes, Care in residential homes for the disabled and Alternative care models. Care in retirement homes is the largest segment of the Retirement Homes in Germany.

Trends and Insights

Demographic change is increasing the need for care in retirement homes

  • In retirement homes, staff are available to help residents with everyday tasks if required. Some facilities also offer therapeutic services such as physiotherapy, occupational therapy or speech therapy. There are also various sports and leisure activities on offer.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The residential care homes for the elderly and disabled sector comprises the accommodation and care of elderly people and people with disabilities who are either unable to care for themselves or do not wish to live alone. In addition, there is the operation of assisted living facilities. The boundaries to the care home sector are fluid in many cases due to the similar range of services on offer.

What's included in this industry?

Products and services covered in the Retirement Homes industry in Germany include Care in retirement homes, Care in residential homes for the disabled and Alternative care models.

Companies

Companies covered in the Retirement Homes industry in Germany include Victor’s Bau + Wert AG, Cidron Atrium SE and Emeis Deutschland GmbH.

Purchase this report to view all 5 major companies in this industry.

Related Terms

Related terms covered in the Retirement Homes industry in Germany include in need of care, outpatient care services and senior citizens' residential community.

Industry Code

WZ 2008

WZ 87.30 - Retirement Homes in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The demand for retirement home places is high and rising due to demographic change and the resulting increase in the number of senior citizens.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Alternative care services are particularly popular. Most people also want to live as autonomously as possible in old age, which is why assisted living is particularly popular...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Densely populated regions are popular locations for retirement homes, which is why most facilities in the sector are located in the centre region.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

In many places, demand for retirement home places is outstripping supply. Nevertheless, industry players are competing for wealthy customers.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Many industry players are expanding. Acquisitions, new builds and forays into other foreign markets are the order of the day for retirement homes.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Victor’s Bau + Wert AG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Cidron Atrium SE's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Emeis Deutschland GmbH's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Victor’s Bau + Wert AG, and factors influencing its performance in the industry
  • Description and key data for Cidron Atrium SE, and factors influencing its performance in the industry
  • Description and key data for Emeis Deutschland GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The Nursing Staff Reinforcement Act is intended to help prevent malpractice in retirement homes. As part of indicator-based quality testing, internal quality testing is suppl...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Retirement homes often generate high returns. In particular for private companies, double-digit returns are not uncommon. Non-profit operators have lower profit margins.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Retirement Homes industry in Germany in 2025?

The market size of the Retirement Homes industry in Germany is €28.0bn in 2025.

How many businesses are there in the Retirement Homes industry in Germany in 2025?

There are 1,773 businesses in the Retirement Homes industry in Germany, which has declined at a CAGR of 0.7 % between 2020 and 2025.

How may import tariffs affect the Retirement Homes industry in Germany?

The Retirement Homes industry in Germany is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Retirement Homes industry in Germany?

The Retirement Homes industry in Germany is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Retirement Homes industry in Germany grown or declined over the past 5 years?

The market size of the Retirement Homes industry in Germany has been growing at a CAGR of 1.3 % between 2020 and 2025.

What is the forecast growth of the Retirement Homes industry in Germany over the next 5 years?

Over the next five years, the Retirement Homes industry in Germany is expected to grow.

What are the biggest companies in the Retirement Homes industry in Germany?

The biggest companies operating in the Retirement Homes industry in Germany are Victor’s Bau + Wert AG, Cidron Atrium SE and Emeis Deutschland GmbH

What does the Retirement Homes industry in Germany include?

Care in retirement homes and Care in residential homes for the disabled are part of the Retirement Homes industry in Germany.

Which companies have the highest market share in the Retirement Homes industry in Germany?

The company holding the most market share in the Retirement Homes industry in Germany is Victor’s Bau + Wert AG.

How competitive is the Retirement Homes industry in Germany?

The level of competition is high and steady in the Retirement Homes industry in Germany.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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