The office real estate market and the hotel sector have been particularly affected by the impact of the Corona pandemic. As a result, the focus of institutional investors has shifted: Investment interest has now risen sharply, particularly in the residential real estate and logistics sectors and in the healthcare real estate asset class. In the third quarter of 2020, the healthcare real estate market in particular is strongly in the focus of institutional investors. This is according to the quarterly report of the real estate services company CBRE, which looks at the changes in the real estate market.
According to data from CBRE's "Market View Snapshot - Germany Healthcare Real Estate", the investment volume in this asset class reached almost EUR 2 billion in the first three quarters of this year. Above all, nursing homes are the focus of investor interest. This trend is noticeable because nursing homes account for 69 percent of the investment volume in healthcare real estate, or EUR 1.34 billion. A further 19 percent of the investment volume is in the assisted living sector.
Experts attribute the increasing demand for healthcare real estate from national and international investors to the search for secure rental and lease payments. The risk assessment of investors in the healthcare real estate sector is considered to be low. This is because, according to statements by the major portfolio holders, there have been no rent defaults in the healthcare real estate sector to date. The strong demand for real estate in the nursing home sector and the low supply in this sector have resulted in a year-on-year decline in the prime yield to 4.25 percent.
Source: CBRE
© fotolia.com
