Total transaction volume reaches approximately €2.14 billion after nine months, exceeding the full-year totals recorded in 2023, 2024 and 2025
- Transaction volume in the German healthcare real estate market reached €318 million in Q3 2026
- Nine-month volume more than doubled year-on-year
- Prime yields remain stable: nursing homes at 5.10%
- Portfolio transactions in the care home sector drive transaction activity
According to Cushman & Wakefield, the German healthcare real estate* market recorded a transaction volume of approximately €318 million in the third quarter of 2026. As a result, total transaction volume for the first nine months of the year reached around €2.14 billion, more than double the level recorded in the same period of the previous year (approximately €1.02 billion). Investment volume has already surpassed the respective full-year totals achieved in 2023, 2024 and 2025 and stands more than 11% above the five-year average annual volume for 2021–2025 (approximately €1.92 billion).
Jan-Bastian Knod, Head of Healthcare Advisory at Cushman & Wakefield, commented:
“The trend seen in the previous two quarters continued consistently throughout the third quarter. Transactions are taking place more frequently within a new market cycle characterised by changing capital flows, the repricing of real estate assets and altered capital requirements. Liquidity is available from both domestic and, in particular, international investors across the healthcare real estate sector, while current market conditions are creating opportunities to invest on attractive terms. International capital sources in particular are finding compelling entry points into the German healthcare real estate market.”
Portfolio Transactions Shape the Third Quarter as International Capital Dominates
The third-quarter result was driven by four portfolio transactions, all within the care home sector, which accounted for nearly 78% of quarterly transaction volume. The largest transaction involved the acquisition of nine care facilities operated by the Integra Group by Elevation Advisors. Largely as a result of this transaction, international investors dominated activity during the quarter, accounting for nearly 72% of total transaction volume.
Across the first nine months of the year, approximately 66% of investment volume originated from international investors, while portfolio transactions represented around 77% of total market activity.
In Q3 2026, approximately €270 million was invested in care-related assets, including €239 million in nursing homes and €31 million in assisted living schemes. A further €48 million was invested in medical facilities, comprising €29 million in inpatient healthcare properties and €19 million in outpatient healthcare facilities. On a cumulative basis, care-related assets accounted for approximately €1.29 billion of investment volume during the first nine months of the year.
Prime Yields Remain Stable
Prime yields for healthcare real estate continue to remain stable:
- Nursing homes: 5.10%
- Assisted living schemes (senior living): 4.50%
- Outpatient medical facilities (Medical Care Centres/MVZs): 4.75%
- Inpatient healthcare facilities (hospitals): 5.75%
Yield levels are expected to remain broadly stable through the remainder of 2026.
Cushman & Wakefield Healthcare Report 2026: Healthcare Real Estate as a Strategic Portfolio Allocation
The third-quarter results reinforce the key findings of Cushman & Wakefield’s Healthcare Report 2026, published in September. Healthcare real estate has become one of Germany’s most structurally attractive asset classes and is gaining increasing relevance within institutional investment portfolios.
Supported by demographic change, growing care requirements and healthcare policy principles such as “outpatient before inpatient care” and “rehabilitation before retirement”, healthcare assets including nursing homes, assisted living properties, Medical Care Centres (MVZs), and rehabilitation facilities continue to generate long-term, largely recession-resilient income streams.
According to the report, all three major healthcare property segments are characterised by constrained supply. Years of limited development activity have coincided with steadily rising demand, helping to support yields and enhance the attractiveness of existing assets. The outpatient healthcare sector is proving particularly dynamic, with the number of Medical Care Centres (MVZs) more than doubling since 2014 to almost 5,100 facilities in 2024.
Looking ahead, Cushman & Wakefield expects transaction activity to continue increasing over the medium term, supported by new development projects, joint-venture structures and the repurposing of existing buildings.
Jan-Bastian Knod concluded:
“The second half of 2026 continues to reflect the dynamics of this new market cycle, with international capital sources in particular remaining highly active in the German healthcare real estate sector. We expect additional transactions to close before year-end, which could potentially result in the market exceeding the approximately €2.35 billion transaction volume recorded in 2022.”
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*Healthcare real estate includes nursing homes, assisted living schemes, outpatient medical facilities (Medical Care Centres/MVZs) and inpatient healthcare facilities (general hospitals and rehabilitation clinics).
