The German healthcare property investment market recorded a transaction volume of 2.05 billion euros in the first nine months of 2026. This means that, after just three quarters, the total for the whole of 2025 had already been exceeded. The positive market performance was driven in particular by larger portfolio transactions. This is the conclusion reached in a recent analysis by the global property services firm CBRE.
“The healthcare property investment market can look back on a very strong first nine months. It is particularly encouraging that market activity is broadly spread across various segments. In addition to care homes, other property types such as rehabilitation clinics, medical centres and healthcare centres have also contributed to the positive performance this year. The market is thus demonstrating its liquidity: when the asset, capital and asking prices align, even large-scale portfolio and platform transactions can be completed,” says Marco Schnell, Head of Portfolio Investment & Alternatives at CBRE.
Care homes continued to account for the largest share, representing almost half of the total transaction volume. At the same time, rehabilitation clinics provided further impetus to the market: a major transaction involving 20 rehabilitation clinics contributed significantly to the third-quarter results. As a result, rehabilitation clinics ranked second among property types, behind care homes. The trend in the rehabilitation clinic sector shows that larger transactions in this segment attract investor interest provided that pricing, operator quality, and the quality of the property and its location are convincing, and the properties can be positioned for the future.
Not all segments can contribute equally to transaction volumes. In the senior housing sector, market activity is constrained in particular by the limited supply of suitable existing properties and the cost of new-build developments. At the same time, senior housing remains in a phase of development in which operator profiles and concepts continue to evolve dynamically. The low level of transaction activity is therefore not indicative of a lack of investor interest.
In addition to large portfolios, smaller individual properties in the core and core-plus segments are also finding buyers. Family offices and specialist funds, amongst others, are active in the healthcare property sector, where transactions typically range from around ten to 15 million euros. Market liquidity is thus supported by a variety of buyer groups.
At the same time, CBRE is once again observing increased consolidation activity amongst operators, which goes beyond insolvency-related takeovers. This consolidation is driving greater professionalisation within the sector: larger operators often have established structures in place for operational management, reporting and compliance with lease agreement requirements.
“Healthcare property remains a market for specialists. The quality and professionalism of the operators are crucial for investors. At the same time, we are receiving an increasing number of enquiries from owners’ associations and private owners who are considering the sale of their previously divided properties as a single lot. Factors such as succession planning and the desire to hand over responsibility for operational matters play a role here,” says Anna Maria Burrichter, Associate Director of Research at CBRE.
“The slight rise in prime yields over the past twelve months primarily reflects developments in the capital markets. At the same time, it is evident that high-quality healthcare properties are retaining their appeal for investors,” says Marcus Max, Director of Valuation Advisory Services at CBRE. The prime yield (net initial yield) for care homes currently stands at 5.5 per cent. A further rise in yields is on the cards for the final quarter of the year.
Outlook for the remainder of 2026
CBRE continues to expect solid market activity for the year as a whole. In CBRE’s assessment, the fact that the details of the care reform have yet to be finalised has not, so far, led to any fundamental uncertainty in the investment market. The need for care persists regardless of the specific details of the funding arrangements. The long-term fundamentals of the asset class remain unchanged: demographic change and the rising demand for health and care services are supporting demand for such properties.
“We continue to see strong interest from institutional and international investors in the German healthcare property market. Demand for healthcare and care services is driven more by demographics than by economic cycles. This long-term outlook is also attracting international investors, including private equity firms and pension funds. Further large portfolios are on the market and new opportunities are in the pipeline. If buyers and sellers can agree on asking prices, brisk transaction activity is also expected in the coming months,” says Schnell.
