The healthcare investment market in Germany was able to transfer its high momentum from the beginning of the year to the second quarter, slightly weaker: With a transaction volume of € 1.6 billion, the best half-year balance sheet since 2022 was recorded. The long-term average was exceeded by 30%. This is the result of the analysis by BNP Paribas Real Estate.
“Against the backdrop of ongoing macroeconomic uncertainties and geopolitical risks, this represents a remarkably solid result,” emphasizes Christoph Meszelinsky, Managing Director and Head of Residential Investment at BNP Paribas Real Estate GmbH. The number of transactions was at the previous year’s level, but the deal structure has shifted significantly compared to previous years. Portfolio deals shaped market activity to a much greater extent than before. With a volume of just under €1.4 billion, portfolios accounted for around 84% of the total investment volume. This was significantly higher than the long-term average of 55%.
After the sale of two nationally diversified portfolios in the first quarter, a rehabilitation clinic portfolio changed hands in the second quarter for a purchase price in the mid three-digit million range. The large-volume portfolio transactions underline the ongoing market recovery and reflect the renewed interest of institutional investors. Compared to the end of 2025, the prime yield has risen by 30 basis points and is currently trading at 5.20%.
Healthcare real estate with above-average market share of 45%, foreign capital is back
Both nursing and healthcare properties were able to significantly increase their transaction volume compared to the previous year. At around €850 million and just under €720 million respectively, the best half-year result since 2022 was achieved in both segments. Particularly noteworthy is the increased importance of healthcare real estate, which made an above-average contribution to the overall result with a market share of 45%. The assisted living segment, on the other hand, was much weaker, with a transaction volume of just over €40 million markedly below the level of previous years.
The distribution of the investment volume by size class shows a clear concentration on transactions above € 100 million. This segment was significantly influenced by three of the four registered portfolio deals and achieved a very high volume of just over €1.3 billion. Apart from these large transactions, the market structure is much more fragmented. Particularly noteworthy is the size class between €10 million and €25 million, which recorded the highest transaction volume since 2022 at around €210 million.
The exceptionally high participation of international investors is striking, reaching a new high with a market share of 87%. Two of the three large-volume portfolio deals attributable to US investors played a major role in this. This illustrates the return of foreign capital to the German healthcare investment market.
Outlook: Continuation of market recovery, year-end result of between €2.5 billion and €3.0 billion realistic
“The strong market activity in the first half of the year and the return of large-volume portfolio transactions indicate a progressive recovery of the German healthcare investment market. In particular, the high level of interest from international investors indicates that the market recovery is likely to continue in the further course of the year,” predicts Christoph Meszelinsky.
Due to the current often difficult economic feasibility, high construction costs and operator risks, there are currently only a few new construction projects. The resulting supply-side bottleneck often makes it difficult for investors to find suitable products. However, the fundamentals of the healthcare market remain attractive. Against the backdrop of a weak macroeconomic environment, the asset class is comparatively independent of the economic cycle. At the same time, the ageing of society is causing an increasing demand for care and health facilities.
In view of a stable financing environment and the consolidation phase that has largely been completed, the market recovery is likely to gain further momentum. Against this backdrop, an investment volume above the long-term average of around €2.5 billion seems realistic. If the major transactions currently being marketed or prepared are successfully completed, the €3 billion mark will also be within reach again.
