In 2025, investment firm Nrep entered a strategic partnership with Swedish developer Sehlhall Fastigheter, allocating €700 million to expand and modernize the country’s senior living infrastructure. This represents one of the largest sustainability-driven investments in Northern Europe’s care housing sector.
Aging Population: A Challenge and an Opportunity
Sweden faces a rapidly aging population. By 2030, more than 800,000 people over the age of 80 are expected to live in the country, making up nearly 8% of the total population.
The current supply of senior care facilities is critically low. National estimates indicate the need for at least 800 new facilities, including nursing homes, day care centers, and adapted residential complexes.
Nrep’s investment aims to address this urgent demand while building a future-proof, ESG-compliant care housing ecosystem.
Investment Allocation
The €700 million budget (approx. SEK 8.3 billion) will be deployed over five years to develop more than 30 projects across Sweden. Key areas of focus include:
- Construction of energy-efficient assisted living and senior housing
- Expansion and renovation of existing Sehlhall care properties
- Development of flexible living models, including co-living and age-friendly apartments
- Integration of digital tools such as telemedicine and remote health monitoring
Regional Project Highlights
The investment will be distributed among both major cities and underserved municipalities:
- Stockholm – 120-unit senior living residence with 24/7 care: €30 million
- Uppsala – Combined day care center and housing for 80 residents: €22 million
- Jönköping and Örebro – Co-living spaces for active seniors: €15–20 million each
The rollout focuses not only on quantity, but on strategic placement in areas with the greatest demographic pressure.
Environmental Sustainability
All new properties will meet or exceed the BREEAM Very Good certification. Sustainability measures include:
- Solar panels and heat pump systems
- Low-carbon construction materials
- Water- and energy-efficient design
- Waste minimization across the building lifecycle
This aligns with Sweden’s climate goals and Nrep’s broader ESG strategy.
Social Impact and Accessibility
Sehlhall and Nrep emphasize inclusive design and social impact. The projects aim to provide:
- Affordable, high-quality housing for people with care needs
- Barrier-free access and mobility-friendly layouts
- Community-focused amenities that encourage active aging
- Public-private collaboration with municipalities
Sweden’s Senior Housing Market
Construction of a single senior care unit typically costs €150,000 to €200,000. With long-term municipal contracts in place, expected returns range from 4% to 6% annually, making the sector attractive for institutional investors.
Pension funds, insurance companies, and impact-focused developers increasingly view social infrastructure as a low-risk, stable-yield asset class.
Nrep’s Long-Term Strategy
Nrep, managing over €19 billion in assets, has a proven track record in sustainable development across the Nordics. Its work includes green logistics hubs, residential districts, and carbon-neutral buildings.
Through this partnership, Nrep and Sehlhall plan to establish a scalable senior housing model that can be exported to Finland, Denmark, and Norway, where aging demographics mirror Sweden’s.
Conclusion
The €700 million investment from Nrep to Sehlhall represents a powerful response to Sweden’s demographic and care infrastructure challenges.
This initiative not only addresses the shortage of senior housing but sets a new benchmark in quality, sustainability, and social responsibility. As the population ages, forward-looking partnerships like this will shape the future of inclusive, climate-friendly urban development.
