EMEA Healthcare Capital Markets Q2 2026

• EMEA healthcare investment totalled €1.5bn in Q2 2026, down 48% year-on-year and 76% on Q1 2026. The drop in part reflects a lack of large portfolio and entity deals, as well as fewer transactions with the quarterly total falling 18% compared to the prior-year period. Forward investment was the most resilient, with volumes down just 7% year-on-year, compared with declines of 31% in investment and 96% in entity deals. It follows six months of record activity boosted by various multi-billion platform sales. H1 2026 investment reached €7.8 billion, up 59% year-on-year, half of which came from the €3.7 billion merger of Aedifica and Cofinimmo in Q1.
• Germany was the largest market in Q2, with €0.65bn invested, up 88% year-on-year. Growth was driven by Sixth Street's €360m recapitalisation of 20 rehabilitation clinics, the largest deal of the quarter. Sweden had the highest growth (+232% YoY) as the third-largest market, however investment fell across other countries. Special purpose healthcare stood out with largest annual gains (+€0.7bn YoY), capturing 53% of healthcare investment against the five-year average of 11%. Three of the top five deals were in this sector, largely from US capital expanding into other European healthcare sectors beyond care homes. The traditionally dominant care home sector was notably quiet, down 73% year-on-year, but is expected to rebound in Q3 with the €1.2bn final tranche of the Aedifica-Cofinimmo merger.
• The average blended European care home yield compressed a further 4 basis points year-on-year to 5.16% in Q2. Yields in Sweden and Germany compressed year-on-year by 20 and 15 basis points, respectively, following increases in care home transactional activity. International investors are further increasing exposure to cure sectors, supported by recent transactions and partnerships. In July, US-based Blue Owl Capital acquired a £1.3bn UK private hospital portfolio, while PHP partnered with GIC on a £700m+ portfolio in May, marking GIC's entry into the sector.
   

EMEA healthcare attracted a record €24.1bn in the last 12 months (entity deals: 65%), compared to €10.6bn in the previous 12 months. The UK represented over half of investment activity, driven by Welltower's acquisitions of Barchester Healthcare and HC-One totalling £6.4bn, as well as PHP's purchase of Assura in Q4 2025.

Rising elderly populations and growing healthcare expenditure are both core demand drivers for healthcare services and healthcare real estate, including long-term residential care facilities. Explore which markets have the strongest fundamentals using the map below. Click on a country to see more details relating to population and health expenditure.