Research conducted by local Dutch advisor, Capital Value, shows that more than €500 mln of healthcare real estate was sold in the first six months of 2022, which is comparable to the record volume achieved in the first half of 2021.
The lion’s share of volume (87%) consisted of sheltered housing; the remainder being first-line and second-line healthcare properties. Real estate funds comprising both listed and mixed plus institutional investors were responsible for the largest part of the investment volume: 63%.
Nearly half of the volume (43%) was invested in new build or conversion projects. At €7.5 bn, the demand for healthcare real estate among investors will remain very high for the next three years, predicts the company.
Manon Kuipers, director of healthcare property & housing association property, said: ‘The figures for the first half of 2022 show that healthcare real estate remains a stable asset class in the current market, with sufficient investment opportunities.’
‘In the past six months, additional new foreign parties entered the Dutch healthcare real estate investment market, such as the Belgian insurer AG Real Estate via the purchase of a multifunctional residential care centre in Dronten with sector specialist, Sectie5, and Patrizia from Germany via the purchase of residential care property De Keyzer in Amsterdam.’
Due to the challenges facing the new build segment and the announced transfer tax increase, we expect an increase in the demand for and supply of existing properties. This would mean that the upward trend in the transaction volume over recent years will continue.’
In the first half of 2022, healthcare institutions sold more real estate than in the same period of the preceding year. More than a third of the total number of sales in the past six months involved a healthcare institution as the selling party. As a result, these institutions were responsible for 15% of the total sold volume, making them an important supplier of investment opportunities.
This trend is expected to continue, with healthcare institutions and investors collaborating with increasing intensity over the coming years in order to realise the sustainability targets and address shortages in the sector.
