What is the context in Europe for the Healthcare Real Estate market ?
After three years of challenging transaction activity, the nursing home investment market showed clear signs of recovery in 2025. While the UK continued to dominate European volumes with a record €11.8bn invested, activity across continental Europe nearly doubled compared with 2024, driven by a strong rebound in the Nordics and renewed momentum in countries such as Ireland and Italy. The healthcare market in 2025 continued to be characterised by increasing consolidation among both operators and real estate platforms.
Prime yields broadly stabilised during the year, supported by improving operator fundamentals and easing financing conditions.
In most mature markets, prime yields remained around 5.00%, with early signs of compression emerging in selected countries such as Sweden and the Netherlands, while Southern Europe continued to display higher yield levels, close to 5.75%.
What is the outlook for the nursing home Real Estate market in 2026 ?
Investor behaviour continues to evolve towards greater selectivity, long term rental sustainability, and ESG compliance. Following the return of liquidity in 2025, demand from institutional investors is expected to strengthen further in 2026, supported by substantial core and value add capital seeking exposure to the sector. Both equity and debt capital flows are increasing, notably for nursing home assets.
Despite ongoing geopolitical uncertainty and global market volatility, healthcare real estate benefits from powerful structural tailwinds that are largely independent of short term cycles. Demographic demand, resilient operational cash flows and a high degree of income stability continue to underpin long term investor conviction.
After the recovery of both investment and operational markets in 2025, we are confident that 2026 is marked by a clear return of liquidity. International and pan European cross border investors continue to be a driving force in the healthcare real estate market.
