Transaction volume more than doubles compared to H1 2025
- Transaction volume in the German healthcare real estate market reached approximately €1.82 billion in the first half of 2026, already exceeding the full-year 2025 total (€1.22 billion) by around 50% after just six months.
- In the second quarter of 2026, transaction volume amounted to €592 million – more than three times the level recorded in the same quarter of the previous year (Q2 2025: approximately €194 million).
- Prime yields remained stable at 5.10% for care homes, 4.50% for senior living/assisted living, 4.75% for outpatient healthcare facilities and medical care centres (MVZs), and 5.75% for inpatient healthcare facilities (hospitals).
- A large-scale, nationwide portfolio transaction in the inpatient healthcare segment was the defining transaction of the second quarter.
Cushman & Wakefield recorded a transaction volume of approximately €592 million in the German healthcare real estate market during the second quarter of 2026. As a result, total transaction volume for the first half of the year reached approximately €1.82 billion.
Investment activity therefore more than doubled compared with the same period last year (H1 2025: approximately €887 million) and already exceeds the entire 2025 investment volume (€1.22 billion) by around 50%. The German healthcare real estate market has thus recorded its strongest first half-year performance since 2018.
Jan-Bastian Knod, Head of Healthcare Advisory at Cushman & Wakefield:
“The first half of 2026 marks a genuine turning point for the German healthcare real estate market. Both domestic and international investors are increasingly targeting resilient asset classes with stable income models underpinned by demographic trends. The healthcare and care sector’s stability following the Covid pandemic provides greater planning certainty and is likely to further stimulate investment activity across this diverse asset class during the second half of 2026 and in the years ahead.”
Large-Scale Portfolio Transaction Drives Second-Quarter Performance
The second-quarter result was largely driven by a major nationwide portfolio transaction in the inpatient healthcare segment. The deal highlights the continued strong interest among institutional investors in large-scale, diversified portfolios with established operating structures and demonstrates the liquidity available in the healthcare real estate market.
Of the €592 million transacted during Q2 2026, approximately €86 million was invested in care-related real estate (€57 million in care homes and €29 million in assisted living assets), while approximately €506 million was invested in healthcare facilities, including €444 million in inpatient facilities and €62 million in outpatient healthcare properties.
This growth was supported by strong increases in care-related assets and by a substantial expansion in the healthcare facilities segment, particularly through large-scale inpatient portfolio transactions.
Only the assisted living segment remained below the exceptionally strong transaction volume recorded a year earlier, primarily due to the ongoing shortage of available product and limited new development activity.
Knod comments:
“While these figures can fluctuate considerably from quarter to quarter, the transaction volumes clearly represent a milestone for this asset class. Healthcare real estate is firmly on track to becoming a major and established investment sector within the broader real estate investment landscape.”
Prime Yields Remain Stable
Prime yields for Healthcare Real Estate have remained stable since 2023:
- Care homes: 5.10%
- Senior living / Assisted Living: 4.50%
- Outpatient Healthcare Facilities (MVZs): 4.75%
- Inpatient Healthcare Facilities (Hospitals): 5.75%
Given sustained investor demand and the continued lack of available investment products, prime yields are expected to remain stable throughout the second half of 2026.
Policy Developments Provide Additional Tailwinds
The investment environment for healthcare real estate also improved further on the political front during the first half of 2026.
On 6 March 2026, the German Bundestag passed the Hospital Reform Adjustment Act (KHAG), refining the hospital reform adopted at the end of 2024 and making its implementation more practical. The introduction of capacity-based funding has been postponed by one year, while 2026 and 2027 will be treated as budget-neutral transition years. Full financial implementation is scheduled from 2030 onwards.
At the same time, Germany’s federal states have been granted greater involvement in the process, and implementation deadlines have been extended, providing both hospital operators and investors with greater planning certainty.
In addition, the Hospital Transformation Fund (KHTF) has been available since January 2026. Up to €50 billion is earmarked for the modernisation of Germany’s hospital infrastructure by 2035, with approximately €29 billion provided by the federal government. The fund can now also be used to support university hospitals. These measures create additional opportunities for investors, particularly in relation to refinancing modernisation projects and ESG-related upgrades within existing assets.
The shift towards outpatient healthcare delivery remains firmly in place and is expected to accelerate further during the second half of 2026. According to the latest Hospital Report 2026 published by the Scientific Institute of the AOK (WIdO), around 60% of cases currently treated on an inpatient basis have the potential to be delivered in outpatient settings.
This development supports continued positive leasing and value growth prospects for outpatient medical centres, medical office buildings and healthcare campuses.
Jan-Bastian Knod concludes:
“The reform package ultimately provides greater reliability and planning certainty for hospital operators—and that is also an important signal for institutional investors. We expect investment momentum to remain strong throughout the second half of 2026, particularly for large-scale, multi-regional portfolios and outpatient healthcare concepts. If the momentum seen during the first six months continues, 2026 could become one of the strongest years for the German healthcare real estate market in recent times.”
