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

H1 transaction volume for healthcare real estate second-strongest of past decade

Verena Bauer • 13/07/2022

International real estate consultancy Cushman & Wakefield (C&W) reported transaction volume of around EUR 1 billion in the German healthcare real estate market in H1 2022 (H1 2021: EUR 1.14 billion), making it the second strongest H1 in the past ten years. At around EUR 430 million, the 2nd quarter was slightly above the previous year’s equivalent figure. The majority of the transaction volume was again accounted for by nursing care properties, contributing some EUR 357 million.

Prime yields stable
As in the previous quarter, the prime yield for nursing homes was 3.9 percent. In the assisted living segment, C&W note values of between 3.0 and 3.5 percent. The prime yield for medical centres and medical care centres is between 3.5 and 4.0 percent, for clinics and hospitals it is about 50 basis points higher.

Jan-Bastian Knod, Head of Healthcare Advisory and Residential Advisory at C&W: "Demand for care properties remains high, both among investors already active in the German market and among potential entrants to the market. The financing environment has changed significantly over recent months. Nevertheless, prime yields remain static for the time being, reaffirming the crisis resilience of healthcare real estate already proven during the Covid-19 pandemic." 

Healthcare Investment Germany Q2 2022

Individual transactions determine market events 
Individual asset transactions accounted for about EUR 338 million, or about 78 per cent of total transaction volume. Regarding portfolio transactions, the purchase of the Futura III portfolio by Primonial made a very significant contribution to transaction volume. The seven properties comprising the portfolio are leased long-term by advita Pflegedienst GmbH. C&W expects further major portfolio transactions to be completed by the end of the year.

Forward transactions still very relevant in the care sector
Due to the lack of existing properties in the care sector, especially assisted living facilities, forward transactions, with over 30 per cent of the total transaction volume in Q2 2022, continue to make a significant contribution. The increasing demand for ambulant and inpatient care places can only be met by expanding capacity.

Increases in construction costs and rising interest rates make planning more difficult
"Higher construction costs, rising interest rates, geopolitical crises and growing inflation rates are causing great uncertainty. Nonetheless, we continue to see increased interest in healthcare properties. In this context, the quality of operators and key operating figures are increasingly carefully perused by investors. They are also continuing to seek greater diversification of their portfolios," says Jan-Bastian Knod, Head of Healthcare Advisory at C&W. 

"The operator market in Europe has become increasingly professionalised and consolidated in recent years. As a result, there are already some larger operator platforms active across Europe. However, many investors prefer a mix of large, creditworthy operators and small to medium-sized regional companies with regional expertise in the specific markets for their properties."



verena bauer
Verena Bauer

Head of Marketing & Communications Germany, Cluster Lead • 60313 Frankfurt am Main


Berlin Investment Market Q4 2022

In 2022 international active real estate consultancy firm Cushman & Wakefield registered commercial real estate transactions in Berlin with a total volume of EUR 8.54 billion. 

Verena Bauer • 13/01/2023

BER Büromarkt
Berlin Office Market Q4 2022

International real estate consultancy firm Cushman & Wakefield has registered take-up of 778,300 sq m in Berlin's office letting market in 2022. 

Verena Bauer • 12/01/2023

MUC Investmentmarkt
Munich Investment Market Q4 2022

According to international real estate consultancy firm Cushman & Wakefield, Munich’s commercial real estate market generated a transaction volume of around EUR 810 million in Q4 2022. 

Verena Bauer • 12/01/2023


Germany Market View
Insights • Economy

Germany Real Estate Market View

A regular update on the commercial real estate market in Germany.
Ursula-Beate Neisser • 03/01/2023
Earth day
Insights • Sustainability / ESG

Earth Day: New from old

Is it better to convert or demolish? When is your property fit for the future, when does it have potential and when is even a conversion a hopeless prospect? 
Verena Bauer • 22/04/2022


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.
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