European Healthcare Real Estate Interface

• European healthcare investment reached €2.2bn in Q3 2025, down -13% compared to the same period last year. Care home investment increased +58% year-on-year and +16% against the five-year average, accounting for 73% of total healthcare real estate investment. Investment in clinics also increased, more than quadrupling year-on-year and up 11% above the five-year average, while hospitals investment fell 61% year-on-yea, but remained flat against the five-year average.
• The largest deal of the quarter was StepStone Real Estate and Greykite’s agreement to recapitalize Vitalia, Spain’s second largest care provider.This transaction follows a series of large platform deals in the rapidly consolidating care home sector, with strong appetite from US capital. As aresult, entity deal volumes rose more than threefold year-on-year.
• The average blended European care home yield remained stable quarter-on-quarter after compressing 6 basis points in Q2 2025. The Q3 2025 yield is 12 basis points below Q3 2024 levels. Market stability and transactional evidence continue to drive large entity and portfolio sales, with substantial transactions in Q4 expected to result in record annual volumes. However, higher-than-expected inflation is again putting pressure on operating margins.
   

European healthcare has attracted an average investment of €11.7bn annually over the past five years. See below healthcare investment volumes by quarter, covering key healthcare sub-sectors such as care homes, senior living, special-purpose facilities, hospitals and clinics.

What are the key transactions in each market and who do they involve? See the deals and key players influencing this growing market.

How do these compare to other sectors? Understand pricing levels across mature and growing markets.

Compare prime net investment yields for care homes across Europe in the following visualisation. Prime yields relate to well-located, modern quality stock, let on long-term institutional leases to high quality operators.

What is the relative scale and nature of demand across Europe?

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.