European Healthcare Real Estate Interface

• European healthcare investment reached €2.9bn in Q2 2025, up 70% compared to the same period last year. Quarterly investment was 13% above the five-year average, showing positive growth against historical trends for the first time since Q3 2023. Transactional volumes were boosted by the £634m Care REIT sale, increasing the average deal size from €42m last year to €48m. The number of deals rose 50% year-on-year, with the number of smaller deals in the <€50m bracket almost doubling, reflecting European healthcare's rising appeal across both care and cure sectors for listed companies and institutional buyers, as well as an increased appetite for single asset purchases.
• The care home sector grew both year-on-year and against the longer term 5-year trend, attracting the majority (63%) of investment, above the five-year average of 56%. The smaller cure sectors of clinics and hospitals rose faster, more than doubling year-on-year and >40% on the five-year average. The UK was the largest market at 48% of the total, up from 37% in Q1, boosted by the ongoing care home market consolidation.
• The average blended European care home yield compressed by 9 basis points after staying stable for four consecutive quarters, supporting increased investor demand and larger portfolio sales. Normalised inflation, the lower cost of debt and an improved operational performance have led to yield compression evident in transactions in Germany and Italy in Q2.
   

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.