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According to Savills, the transaction volume in healthcare and social real estate in the 1st half of the current year amounted to just under EUR 920 million, an increase of more than 130% compared to the first half of the previous year. This strong increase is mainly attributable to the sale of a nursing home portfolio of Deutsche Wohnen AG, which accounts for more than a third of the total volume so far this year. Despite the strong year-on-year increase, the 10-year average was missed by 3%. In the last twelve months, Savills has registered just under 60 transactions, which is about the same level as in the same period last year. The prime yield for nursing homes remained unchanged from the previous quarter at 5.2% and thus also corresponded to the previous year’s figure.
Max Eiting, Director and Head of Healthcare Operational Capital Markets at Savills in Germany, commented on the market as follows: “While domestic investors continue to be cautious, the interest of foreign investors in German healthcare and social real estate is increasing significantly. Behind many purchases in recent months was international capital, including from Australia, Hong Kong and Spain. Overall, however, the market has not yet returned to the momentum it had a few years ago. Many investors remain skeptical, especially when it comes to nursing homes. In contrast, we are observing an increasing interest in medical centres, medical care centres and educational properties. The political will to strengthen outpatient care and the infrastructure package launched by the federal government should provide long-term growth impetus here.”
Despite investor skepticism, nursing home transactions dominated the market in the 1st half of the year. They generated sales of a good 750 million euros, or four-fifths of the total volume. Medical centres achieved a turnover of 112 million euros (+ 50%) compared to the same period of the previous year. All other types of objects played a clearly subordinate role.
