Between a cautious and an expansive strategy: How do players in the German healthcare property market act?
While the German real estate market has moved towards stabilisation over the last twelve months in terms of inflation, construction costs, and the ECB’s key interest rate, the healthcare sector has also experienced turbulence, particularly in the operator market. The sharp rise in costs and delayed refinancing of these costs led to deferred rental payments and even operator insolvencies. However, a reversal of this trend in the operator market is already recognisable and demand for healthcare services is higher than ever, with a large surplus in demand in both outpatient and inpatient sectors.
Due to the long-term operator structure in the German healthcare property market, the segment offers secure long-term opportunities with a high level of crisis resilience – another reason why German healthcare properties have become a key component of the investment strategy and diversification of many capital sources.
How do market players assess the current situation and how has their sentiment changed since the last surveys? We asked 105 domestic and international property investors, portfolio holders and project developers about their acquisition and sales targets for this year and their investment strategy for 2025, resulting in a comprehensive, representative picture of opinion.
Topics of the survey of 105 market participants:
- Is a stabilisation of prime yields in the healthcare property market discernible?
- For which property types is liquidity expected?
- Will forward deals be more attractive and once again possible?
- What are the main risks and drivers on the market?
