Investing in Care Homes: Luxury Trends Are Rising, but Quality Care Still Leads perspective by Preyen Dewani

The UK care sector continues to evolve at speed, driven by an ageing population and a widening gap between demand and the supply of high-quality beds. New capital, rising expectations and shifting design philosophies are influencing what a care home looks like and how it feels for the people who live there.

Two themes stand out the rise of luxury, hospitality-driven care homes and the shift toward larger, purpose-built developments

Both bring opportunities. Both raise questions. And both matter for anyone considering an investment in care.

The Expansion of Luxury Care Homes

A new generation of care homes has emerged, environments that feel closer to boutique hotels than the traditional residential model many of us are familiar with.

High-end providers are introducing:

• hotel-grade interiors

• spas, gyms and private dining rooms

• lifestyle-led activity programmes

• concierge-style support

These settings appeal to older adults who value comfort, autonomy and upgraded amenities. And with people aged 65+ now holding more than half of the UK’s wealth, the demand for elevated living spaces is unsurprising. But this rise has also opened a wider debate.

The Hotel vs Home Question

A hotel can be beautiful, but beauty alone doesn’t make it a supportive environment, particularly for those living with a Dementia. The very features that create a “luxury” feel can sometimes work against cognitive needs. Large open spaces, visually complex interiors or unfamiliar layouts may create anxiety rather than comfort.

This doesn’t mean luxury care is incompatible with dementia care. It means luxury must be intentional, designed around the lived experience of residents, not around hospitality trends. When design is purpose-led, luxury can enhance wellbeing. When it isn’t, it becomes a distraction.

What Investors Should Consider

Care remains an attractive sector for investment, but it is not passive. It requires alignment, patience and clarity of purpose. A few high-level considerations:

• Understand the category of care

Residential, nursing, dementia or high-end hospitality all have different cost bases, staffing demands and regulatory expectations.

• Look beyond luxury features

A spa doesn’t drive occupancy. Confidence in leadership, reputation and consistency of care do.

• Assess workforce stability

Staffing remains the most defining factor in operational quality and long-term sustainability.

• Prioritise local market insight

Demographics, affluence, planning conditions and local authority dynamics shape future demand more than any architectural feature.

• Be clear on values and intent

Care homes succeed when owners and operators share a long-term, human-centred philosophy.

Luxury Is Welcome, but Purpose Comes First

As the sector continues to modernise, we’re seeing real investment in design, infrastructure and lifestyle. Those improvements are positive and overdue. But amid this progress, one principle remains constant - a care home must remain a home.

The sector’s future will be shaped less by grand lobbies or hotel-style features, and far more by environments and leadership that support dignity, safety and a sense of belonging.

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Thoughts and Perspectives by Preyen Dewani