Cushman & Wakefield (C&W) recorded transaction volume of around EUR 130 million in the German healthcare real estate market in Q1 2024 (Q1 2023: approx. EUR 325 million). This was the fifth successive quarter in which the transaction volume was less than EUR 500 million.
Weak start to 2024
With a total of EUR 134 million, Q1 2024 was the weakest 1st quarter for healthcare real estate of the past five years. The care homes segment generated the majority of this, some EUR 81 million, while the assisted living and ambulant medical care segments each contributed only a small proportion.
Prime yields remain stable
The prime yield for care homes in Germany remained unchanged at 5.10 percent in Q1 2024 (Q4 2023: 5.10 percent). There was also no movement in senior assisted living residences remaining at about 4.50 percent, as in the previous quarter. Prime yields for ambulant medical care facilities (MVZ) range between 4.50 and 4.75 percent, while for inpatient medical care facilities (clinics) they range between 5.50 and 6.00 percent.
Investor interest revived
“Interest from national and international capital sources is increasing again and there is a lot of liquidity available for investing in the German healthcare real estate market. The reluctance of last year is giving way to the desire to jump aboard the new cycle at an opportune moment, and make purchases. There is particular strong interest in the assisted living asset class, as well as medical care facilities and rehabilitation clinics” explains Jan-Bastian Knod, Head of Healthcare Advisory at C&W.
