European Healthcare Real Estate Interface

• European healthcare investment reached €2bn in Q1 2025, up 50% compared to the same period last year, although still 27% below the 2020-24 five-year average. Transactional volumes were boosted by a number of large deals in Germany, Spain and the UK. Deals in the €250m-€1bn bracket accounted for 49% of the Q1 total. Investment in this bracket was 10% higher than the five-year average, reflecting a range of domestic and cross-border purchases from government, institutional buyers, fund managers and listed companies.
• The care home sector attracted the majority (76%) of investment, although investment in clinics has risen 80% from the five-year average. The UK was the largest market at 37% of the total, with a variety of sectors attracting investment, followed by Germany at 29%.
• The average blended European care home yield has stayed stable for four consecutive quarters, supporting increased investor demand and larger portfolio sales. Normalised inflation, interest rate cuts and a positive outlook have led to yield compression in Sweden and Spain in the past year.
   

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.