Healthcare properties highly sought after as a defensive investment

In the first half of 2020, the transaction volume on the German investment market for healthcare property came in at €888 million ($1 billion), reflecting an increase of 6 percent in a year-on-year comparison. More than 70 percent of the 10-year average of the transaction volume for a full year amounting to €1.24 billion ($1.41 billion) had already been reached in the first six months. This is the conclusion drawn in a current analysis prepared by the global commercial real estate services company CBRE.

“Ultimately, the current recessionary market phase we are experiencing as a result of the Corona pandemic is boosting the demand for defensive and non-cyclical real estate investments. Institutional investors are particularly appreciative of healthcare and social real estate and of the sustainable cash flow they can deliver,” said Dirk Richolt, head of healthcare real estate at CBRE Germany. Irrespective of current economic developments, the aging of society will also