Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Xing

The market for healthcare real estate is growing - more transactions, more players participating in the market

Verena Bauer • 25/01/2022

With a transaction volume of over 3.7 billion euros in 2021, the relevance of, and demand for, German healthcare real estate is becoming clear. 82 percent of investors are investing in development projects or are preparing to do so. Further insightful results are provided in the complete Healthcare Real Estate Investor Survey 2022 by Cushman & Wakefield. 

Jan-Bastian Knod, Partner, Head Residential Advisory and Head of Healthcare Advisory at Cushman & Wakefield explains: "Compared to traditional residential properties, healthcare real estate offers more attractive yields, although these have already compressed significantly due to increasing competition among investors. Institutional investors taking a holistic approach are increasingly integrating healthcare real estate into their investment strategy with sustainability and ESG in mind."

Many asset and investment managers active in the market
More than 120 participants from the German healthcare real estate market took part in the survey. Of these, 55 percent are asset and investment managers, 17 percent project developers. 76 percent of them stated that they have already invested in the German healthcare market or are developing properties here. 6 percent are currently working on entering the market. Thus, new investors and developers can be expected in the German healthcare real estate market in the coming months.

Investors are involved in health and housing 
Participants who invest in healthcare real estate (76 percent of the respondents in this study) are often also active in the area of traditional housing (63 percent). Senior living and ambulant care form the interface here, linking both asset classes. However, some investors are also broadly positioned in more than two asset classes and thus in the entire real estate market.

Almost all risk profiles acceptable
The risk-return profile of investors is broadly diversified. From Core (61 percent) to Core+ (65 percent) to Value-Add (54 percent), all risk profiles are accepted. Only the opportunistic segment (20 percent) is not in demand among healthcare real estate investors. 

Development projects are the answer to lack of available product
62 percent of the investors surveyed stated that they invest in or acquire development projects via forward-deal transaction structures. 20 percent plan to do so in the future. Development projects offer investors the opportunity to secure properties at an early stage and thus circumvent the prevailing lack of available product caused by the high level of demand. 

Investors expect price increases
Investors anticipate a very positive purchase price trend in the next twelve months. Regardless of building age or location, at least 70 percent of those surveyed expect prices to rise. This is especially true for new buildings in the top-7 cities. Here, around half expect an increase of more than 2.5 percent in the next twelve months, and up to 10 percent in the next five years. 

Jan-Bastian Knod, concludes: "Healthcare real estate in Germany is more highly sought-after  than ever before. The asset class has proven, especially during the Covid 19 pandemic, that it is crisis-resistant and a safe investment opportunity for investors. The number of players in the German healthcare real estate market has grown steadily in recent years, with many seeking access to the market."

 

 

MEDIA CONTACT

verena bauer
Verena Bauer

Head of Business Development Services, Germany • 60311 Frankfurt am Main

RECENT NEWS

Cushman & Wakefield European Luxury Retail Report
Continuing attractiveness of well-established luxury retail locations in Europe

The continuing attractiveness of well-established luxury retail locations in Europe led to 107 new openings on 20 key luxury streets in 16 cities in 12 countries in 2023, according to the first “European Luxury Retail Report” by Cushman & Wakefield.

Verena Bauer • 08/05/2024

Michael Fleck Branch Manager Frankfurt
Michael Fleck appointed as new Head of Cushman & Wakefield’s Frankfurt branch

Michael Fleck is the new Head of Cushman & Wakefield’s Frankfurt branch. In addition to his new role, Michael Fleck will continue to lead C&W’s Frankfurt Capital Markets team.

Verena Bauer • 30/04/2024

Living Investor Survey
European Residential Investment

Investment in the EMEA residential sector has the potential to reach €70-85 billion per year over the next five years, according to one of the findings of the EMEA Living Sector Survey by Cushman & Wakefield.

Verena Bauer • 25/04/2024

INSIGHTS

Office Fit Out Cost Guide - Web card
Insights • Workplace

Germany Office Fit Out Cost Guide

Utilize our Office Fit Out Cost Guide 2024 to effectively plan and budget your office evolution in Germany. Start transforming your workspace in cities like Berlin, Frankfurt, and Munich today!
20/03/2024
Cushman & Wakefield Asset Optimisation Guides
Insights

Complete Asset Optimisation Guide

Our asset optimisation whitepapers serve as your comprehensive guide through the multifaceted real estate landscape.
Verena Bauer • 05/03/2024
City Logistics
Insights

European City Logistics Reports

Cities – and city logistics – continue to evolve in the post-pandemic environment. And with them, city logistics real estate strategies are also evolving.
Verena Bauer • 07/02/2024

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS