Savills has examined the German investment market for healthcare and social real estate. Enclosed you will find the result:
In the 1st quarter of 2026, the transaction volume with healthcare and social real estate amounted to just over 1.1 billion euros, according to Savills. This means that the value of the entire previous year (1.2 billion euros) was almost reached in the 1st quarter. It was also the strongest quarter in terms of sales since the end of 2024, mainly due to the acquisition of a majority stake in Cofinimmo by Aedifica and the acquisition of a medical center portfolio from Northwest Healthcare Properties by TPG Real Estate. In the 1st quarter, Savills recorded about a quarter more transactions than the quarterly average of the last two years.
Prime yields remained stable both compared to the previous quarter and the same period last year. At the end of the 1st quarter, they were 5.2% for nursing homes, 4.7% for medical centres and 4.5% for assisted living.
Max Eiting, Director and Head of Healthcare Capital Markets at Savills in Germany, commented on the market as follows: "Interest in German healthcare and social real estate has increased noticeably in recent quarters – led by large, often international institutional investors. This picture was recently confirmed at MIPIM. Many of these investors are specifically looking for larger portfolios, which are currently hardly available in Germany. Against this backdrop, the two major transactions in the first quarter represent an exception in an otherwise highly fragmented market. The demand for medical centers is currently developing particularly dynamically. In addition to traditional investors from the healthcare real estate sector, there are also more and more long-standing office investors who appreciate the structural proximity to office properties and at the same time benefit from the particularly stable demand for space from medical service providers. At the same time, we are also observing that investor demand for nursing homes is also increasing. Value-add investors are increasingly involved here, aiming for initial returns of over 7% and calculating with double-digit total returns. The economic stabilization of many operators as a result of successfully concluded negotiations with the cost bearers once again strengthens confidence in the segment – even if the shortage of skilled workers remains a key challenge. The increased demand from investors is likely to lead to a moderately higher number of transactions, which was already shown in the first quarter with an increase in sales cases. For the remainder of the year, we expect market dynamics to remain largely stable."
Nursing home transactions dominated the market in the 1st quarter of 2026. They generated sales of a good 559 million euros or 50% of the total volume. This was followed by medical centres with a volume of 262 million euros (23% of the total volume). The two property types assisted living and hospitals/rehabilitation clinics each accounted for around 12% of the total volume.
