In the first half of 2026, the German healthcare real estate investment market generated a transaction volume of EUR 1.38 billion, an increase of 48 percent compared to the same period last year. This continued the recovery of the investment market. However, more than one billion of the transaction volume was accounted for in the first quarter. The prime yield (net initial yield) for nursing homes rose slightly to 5.5 percent. This is the result of a recent analysis by the global real estate service provider CBRE.
“The healthcare real estate investment market developed robustly in the first half of the year and gained momentum. It is particularly pleasing that market activity is increasingly on a broader basis and is no longer just characterised by individual large transactions. Against this backdrop, 2026 is shaping up to be the strongest year for the German healthcare investment market since the beginning of the interest rate turnaround,” says Marco Schnell, Head of Portfolio Investment & Alternatives at CBRE.
Once again, nursing homes proved to be the backbone of the healthcare real estate investment market. At EUR 781 million, this asset class accounted for significantly more than half of the total transaction volume. Outpatient healthcare properties such as medical centers continued their positive development and increased significantly compared to the same period last year. Clinics and rehabilitation clinics also recorded an above-average transaction volume, while senior living remained below the previous year’s level.
“Nursing homes continue to form the foundation of the German healthcare real estate investment market. At the same time, we are observing that investors are increasingly evaluating the individual subasset classes in a differentiated way. In particular, the focus is on properties with long-term stable demand and flexible usage prospects,” says Anna Maria Burrichter, Associate Director Research at CBRE.
However, the comparatively high transaction volume in clinics and rehabilitation clinics must be viewed in a differentiated way. A significant proportion was accounted for by sales to project developers with conversion strategies or owner-occupiers and is therefore only comparable to classic investment transactions to a limited extent. “There are also options for vacant healthcare properties. A careful analysis of the location, building structure and demand potential is crucial in order to identify possible subsequent uses or further developments,” explains Burrichter.
“The slight increase in prime yields primarily reflects the development on the capital markets. At the same time, it is evident that high-quality healthcare properties retain their attractiveness for investors and that the price level is proving to be stable overall,” says Marcus Max, Associate Director Valuation Advisory Services at CBRE.
Outlook for the rest of 2026
For the second half of the year, CBRE expects continued solid market activity. It is true that the discussions about the future design of health and care reforms continue to cause uncertainty and make investment decisions more difficult. However, this does not change the long-term fundamentals of the asset class. Demographic change, the increasing demand for health and care services and the professional operating landscape continue to make Germany one of the most attractive healthcare markets in Europe.
“We continue to observe great interest in the German healthcare real estate market from institutional and especially international investors. At the same time, the range of larger investment opportunities remains limited. As soon as buyers and sellers come together more closely again in larger transactions, we see further potential for a revival of market activity,” says Schnell.
Transaction volume in the healthcare real estate investment market
