Tangible recovery on the healthcare real estate investment market

- Transaction volume rises to €1.2 billion in 2025, reflecting growth of 18 percent year on year
- Care homes remain a stable anchor – outpatient healthcare properties continue on growth trajectory
- Price level stable across all sub asset classes

After the 2023 crisis year, Germany’s healthcare real estate investment market recorded a notable recovery in 2025 for the second year in a row, posting growth of 18 percent to €1.2 billion. Along with the healthcare asset class, only hotel and retail recorded an increase in the investment volume in a year-on-year comparison. This performance confirms the market segment’s appeal that is relatively disengaged from general economic developments. These are the results of a current analysis prepared by the global commercial real estate services company CBRE.

Around half of the transaction volume (19 percent to €630 million) was attributable to care homes. Second place was taken by senior living establishments with around €212 million (down 14 percent), followed closely by outpatient healthcare properties such as medical centers with a volume of around €200 million (up 121 percent). The volume of clinics and rehab clinics taken together came in at €170 million, reflecting growth of eight percent compared to the year before.

“The price correction in existing stock has largely been concluded, so that buyers and sellers can agree on a realistic price basis for their negotiations.”
Marco Schnell, Head of Investment Advisory Services at CBRE Germany

Accordingly, prime yield (net initial yield) for care homes remained at 5.4 percent.

“The months ahead will show whether there is sustainable evidence for yield compression in the premium segment.”
Marcus Max, Associate Director Valuation Advisory Services at CBRE Germany

“The precondition is, however, that more premium products are traded and that new build activity in particular picks up momentum again,” Schnell adds.

Outlook for 2026
There are large-scale transactions in the market not brought over the line last year and that will presumably be finalized at the start of the new year. Aside from this, preparations are under way for new opportunities. As before, the key driver in 2026 will be selective single asset transactions that have already left their mark on the fourth quarter of 2025.

“Hopes were high that the new German government would initiate the urgently needed reforms for future proofing the healthcare environment,” says Anna Maria Burrichter, Associate Director at CBRE, in summary. “Up until now, however, not a lot has happened and instead of fundamental structural reforms, policy makers are increasingly losing their way in vagueness.” At the same time, the pressure is growing as a number of nursing care insurance companies have warned about the threat of insolvency. The Federal Statistical Office’s current population projection also paints a clear picture: ten years down the line, every fourth person in Germany will be aged 67 or older.

 “The asset class requires investors to have a deep understanding of the complex relationship between real estate, operation and regulatory framework conditions, as well as a willingness to take risks despite the lack of political clarity about the sector’s future. In return, the asset class offers assured demand from occupiers in the long term,” Burrichter explains. 

“International investors are keeping a keen eye on the German healthcare and nursing real estate market and screening suitable opportunities for entering the market since they are focusing on long-term demand for healthcare real estate,” Schnell comments.

The possibility of more flexible usage will play a key role in the sustainability of properties. Accommodating the requirements of a changing market hinges on keeping a close watch on the changing needs of occupiers, in particular with regard to the shift from inpatient to outpatient concepts.