Senior housing becomes a leading real estate investment sector in Europe

According to new data from Colliers, the sector accounted for 11% of the total volume of real estate investment in the EMEA region in the first quarter of 2026, compared with just 4% in previous years.

This development reflects one of the most significant capital shifts in the European real estate market in recent years, with investors increasingly seeking assets driven by long-term social needs rather than solely by economic cycles or traditional rental yields.

As noted by Damian Harrington, Head of Research, Global Capital Markets & EMEA at Colliers, “alongside traditional sectors such as offices and logistics, investment confidence is now strengthening in more specialised and operational real estate categories, such as senior living.”

Of particular interest is the fact that investment in the senior living sector has now surpassed data centres globally as of early 2026, highlighting the remarkable maturation of the sector. Rising demand is closely linked to demographic trends, as the population aged over 65 in Europe is expected to increase by more than 40 million people by 2050.

At the same time, the supply of modern senior housing units in the EMEA region remains extremely limited, creating a significant investment gap that developers and operators are gradually seeking to address. In particular, mixed-use developments that combine for-sale residential units, affordable housing, and elderly care facilities within the same complex are now considered one of the most promising markets for the next decade.

According to Luke Dawson, Head of Global and EMEA Capital Markets at Colliers, “global capital markets are becoming increasingly fragmented, and investors are now directing capital toward markets that offer scale, liquidity, and clarity in valuations.”

This shift also reflects a broader strategic change in the real estate sector, with investment funds gradually moving away from models primarily based on capital appreciation and placing greater emphasis on operational real estate with recurring income from services and occupancy.

Market analysts expect this trend to strengthen further in the coming years, particularly in mature markets such as the United Kingdom, Germany, and the Netherlands, while growing interest is also emerging in Southern Europe, where senior housing infrastructure remains limited relative to demographic demand.