In the first half of 2022, nursing homes achieved the best results on the real estate market. According to a survey by the Munich trade fair company, interest in the asset class is likely to increase.
Germany’s population is aging – accordingly, the need for care properties will increase significantly in the coming years. The Central Real Estate Committee (ZIA) has determined that a good 200 to 300 new nursing homes will be needed annually by the end of the decade, which will require new investments of around 30 billion euros.
More than two thirds of the experts expect care properties to become more important
Because more care properties are needed than are available, the asset class will become significantly more important and interesting for investors in the next few years. This is not only suggested by the investment figures from the first half of the year, but also by a survey by the IfaD market research institute for the Munich trade fair company on the occasion of EXPO REAL 2022 at the beginning of October.
t-online reports that 69 percent of the almost 500 representatives from the real estate industry surveyed believe that buildings will become more important for care. Residential real estate is the second most important building, and buildings for the healthcare sector are third. A comparatively low 12 percent of those surveyed expect that the importance of office properties will increase, for hotels, multi-storey car parks and retail properties it is only four to six percent each.
Health and care properties significantly more popular in the first half of 2022 than before
Looking at the entire real estate industry, around half of the experts surveyed expect fewer investments in general due to the tense market situation. Only 25 percent believe that a lot of capital will flow into all asset classes in the future or that the numbers will even exceed those of recent years.
This assessment appears to be correct for healthcare and nursing properties: According to BNP Paribas, EUR 820 million flowed into healthcare properties in Germany in the first half of the year – this is roughly double the investments from the same period last year. And investments in care properties, at over one billion euros, were 48 percent above the long-term average and achieved the third-best result in history.
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