Nursing homes Market Report Austria 2026

Demographic change is continuing
 
According to current forecasts by Statistik Austria, Austria's population will increase from the current level of around 9.2 m to around 9.4 m by 2040. A particularly significant demographic change affects the age structure of the population, especially the group of people over 75 years of age. While this age cohort currently comprises about 901,000 people, which corresponds to 10% of the total population, their share will grow disproportionately in the coming decades. By 2040, an increase to 1.3 m people is expected, which would increase their share to around 14% of the total population. In 2050, this figure could even rise to around 16%.
 
Mobile care is on the decline, whilst inpatient services are gaining in importance
 
In 2024, around 259,000 people received some type of care services*. This figure represents a decrease of approximately 12,000 service users compared with the previous year, 2023. This is due to a decline in the use of mobile care services, whilst inpatient care and day care services recorded only a slight increase. However, this figure includes only services that were wholly or partly funded by social assistance or minimum income gurantee. Privately funded care services or support are not included in these statistics.
 
Nursing home costs in Austria: Who pays?
 
The costs for inpatient care are governed by tariff systems agreed between the individual federal states, nursing home operators and persons in need of care. However, due to the lack of uniform statutory provisions, the federal states structure their tariffs in very different ways. For example, contracts may be used with standardised tariffs for all nursing homes, individual tariffs for each nursing home operator or location, or specific tariff categories. These tariffs are further differentiated depending on care needs. Within these tariffs, the costs of the respective services are broken down and determined. The type of contract or the individual pricing structure subsequently affects how much those in need of care have to pay. On average, 37% of gross costs are financed from personal funds; in Vienna, personal funds account for just 30%, whilst in Carinthia they stand at 44%. Personal funds comprise pensions and care allowances; the remaining portion is publicly funded through social assistance and the minimum income gurantee.
 
Nursing home market
 
In Austria, there are currently 901 nursing homes with a total of over 78,300 beds available for inpatient long-term care. The majority of these facilities are operated by non-profit or public institutions, while only about a third of the locations are privately operated. On average, there are 10 nursing homes per 100,000 inhabitants in Austria, with the average capacity of a nursing home being 87 beds. This puts Austria in the upper range of OECD countries. In total, the number of people receiving care in nursing homes in 2024 exceeded 96,000, representing just under 20% of all care allowance recipients and 1% of the total population.
 
Buyers are cautious on the nursing home market
 
The Austrian investment market for nursing homes is currently characterised by a restrained buyer mood. In 2025, there were no transactions, although some projects were in preparation. Investors are currently facing specific challenges, including the shortage of skilled nursing staff, increasing regulatory requirements and the consideration of ESG criteria. Although operational real estate generally carries a certain degree of risk, government support through funding schemes comes into play if an operator faces financial difficulties. This support is intended to compensate for lost revenue until a new operator takes over and to ensure the continued operation of the nursing homes.

The asset class experienced yield compression in 2024, resulting in a return of 5.05% at the end of 2025. Due to the lack of registered transactions, the yield development is currently difficult to predict. Future transactions have yet to provide evidence here.