This report takes a deep dive into the United Kingdom (UK) HCRE market, worth c. £2.1b in 2022 (Knight Frank 2023). It can be used as guide for investors and other stakeholders seeking to increase their exposure to this segment of the real estate market.
The analyses reveal that despite extensive volatility in the real estate market, prices in the UK HCRE have dropped less compared to other markets. This is supported by increased demand for healthcare services. This price drop we believe offers investors a rare opportunity to buy into this asset class at values that are expected to rise in the medium term (5 years). While asset prices are declining due to high inflation and rising interest rates, the unmet demand for healthcare services is at record levels (see Section 5).
We believe a wide range of professionals will benefit from this report, namely: pension fund managers, management teams and investors in healthcare companies that have a significant real estate element, managers of real estate investment trusts (REITs), healthcare sector owners and operators, as well as lawyers, surveyors, and real estate professionals.
Our analysis will also assist investors to better understand market trends and the drivers of HCRE growth in the UK.
1. Introduction
2. Key takeaways
3. Definition of HCRE market terms
4. Overview of healthcare markets and institutions in the UK
4.1. Healthcare industry
4.2. Healthcare providers
4.3. Care of the elderly: care homes and supported living