German Healthcare Real Estate: Market Overview

German Healthcare Real Estate: Market Overview

This report is produced by Gilardini Realty, a leading private investment firm specializing in the European Healthcare Real Estate (HCRE) market. In 2023, the German HCRE market was valued at approximately €0.9 billion, reflecting a decline in transaction volumes due to economic uncertainties (CBRE, 2024). Despite the downturn, the sector remains underpinned by strong demographic trends, particularly an aging population, which continues to drive demand for healthcare facilities such as assisted living centers, nursing homes, and outpatient medical centers. This report provides an in-depth exploration of the German HCRE market, identifying key growth drivers and emerging trends in this evolving sector.

Main Findings

The analysis reveals that, while the German HCRE market saw a significant decline in transaction volumes in 2023, the sector's fundamentals remain robust. Demographic trends, particularly the aging population, ensure continued demand for healthcare facilities. Despite challenges such as high inflation and financing difficulties, investor interest remains focused on assisted living and outpatient medical centers. Opportunities are expected to grow as healthcare system reforms and a focus on outpatient services reshape the market landscape. Investors may find value in direct investments, particularly in sale-leaseback operations, with a growing emphasis on ESG considerations.

Who Will Benefit from This Report?

This report is invaluable for a broad range of professionals, including pension fund managers, investors in healthcare companies with significant real estate exposure, healthcare sector owners and operators, real estate professionals, lawyers, and surveyors. It will also benefit institutional investors looking to gain insights into the key market trends and growth drivers of the German HCRE sector, helping them navigate the complexities of this niche market.