Healthcare real estate investment market off to a dynamic start to the year

- Transaction volume rises to €1.07 billion in the first quarter of 2026, reflecting growth of 65 percent year on year
- Focus on care homes and outpatient healthcare properties
- Price level stable across all sub-asset classes

Frankfurt am Main, April 9, 2026 – Germany’s healthcare real estate investment market recorded a transaction volume of €1.07 billion in the first quarter of 2026. Compared with the first quarter of 2025, this marks an increase of 65 percent. Transaction activity was dominated by portfolio deals that captured a share of 86 percent. The price level remained stable across all the sub-segments of the healthcare real estate market. As a result, care home prime yield (net initial yield) continued to post 5.4 percent. These are the results of a current analysis prepared by the global commercial real estate services company CBRE.

“The extremely dynamic opening quarter came close to achieving the entire transaction volume of 2025 as a whole and was determined by two large-scale transactions,” says Marco Schnell, Head of Portfolio Investment & Alternatives at CBRE. Key deals included, on the one hand, Aedifica’s takeover of Cofinimmo that has given rise to Europe’s largest healthcare REIT and, on the other, the sale of Nightingale Portfolios by Northwest Healthcare Properties REIT to TPG Real Estate. The transaction encompasses properties in Germany and in the Netherlands, with CBRE acting in an advisory capacity to the seller.  

Care homes accounted for the largest share in the healthcare real estate market in the first quarter (up 79 percent to €717 million, equivalent to a share of 67 percent). This segment was followed by outpatient healthcare properties with €247 million (up 174 percent). Third and fourth place were taken respectively by assisted living with €56 million (down 59 percent) along with clinics and rehab clinics taken together with €50 million (up 114 percent).

“Outpatient healthcare properties such as medical centers hold growing appeal for investors. These properties unite financial stability and occupier demand with more flexible potential for alternative usages compared with the other sub-asset classes,” says Anna Maria Burrichter, Associate Director at CBRE. “With a view to promoting the development of this sub-asset class, CBRE paired up with Hauck Aufhäuser Lampe in publishing the Market Report on Outpatient Healthcare Properties for the third year in a row. The report can be downloaded using the following Link (German only). 

Outlook for the rest of 2026
“As there are a number of larger portfolios still on the market, there is room for additional transactions. Consequently, we anticipate brisk transaction activity as the year progresses;” Schnell says. “Furthermore, we also expect further product in the form of smaller portfolios and single-asset transactions to come on the market.”

 “While portfolios mainly provide property for value-add or core-plus investors, the focus is on core in the case of single-asset transactions. Players on the lookout for high quality properties will generally only find them in the form of single-asset investments in newly built properties and property developments,” comments Marcus Max, Associate Director Valuation Advisory Services at CBRE. 

“The debate on healthcare reforms is fully under way and the tense geopolitical situation will generate greater uncertainty rather than provide clarity for the development of the sector in the months ahead,” Burrichter explains. “It is therefore all the more important for investors as well as operators to address the topics of resilience and portfolio diversification even more intensively.”