Healthcare real estate investment market down despite high demand


The transaction volume of healthcare properties in Germany fell by 52% to €840mn in the first six months of 2019, according to figures from CBRE. The consulting firm suggested a lack of major transactions as the main reason for the decline. The market share of portfolio deals fell accordingly by 51 percentage points to 27%. Beyond large portfolio sales, however, CBRE observed an increasing momentum. In the years without major sales, the current transaction volume was often not reached until the end of the year. Prime yields for nursing homes remained unchanged compared with Q1 at 4.75%. Despite high demand, especially from foreign buyers, no outstanding major deals are anticipated in H2. CBRE expects a transaction volume of €1.25bn to €1.5bn for the year.

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