Occupancy rebounds in U.K. healthcare market
The U.K. healthcare market is showing signs of growing occupancy and continued investor demand as it rebounds from the COVID-19 crisis.
Knight Frank’s U.K. Healthcare Property Market Overview 2021 has reported that improving occupancy rates are expected to continue throughout 2022, leading the sector’s average occupancy return to pre-pandemic levels.
Occupancy rates in the U.K. elderly care market were down 9.7 percent year-on-year in 2021, averaging 79.4 percent. Knight Frank believes they will return to more than 85 percent at some point this year.
All care EBITDARM (earnings before interest, taxes, depreciation, amortization, rent and management fees) as a percentage of income averaged 26.2 percent in 2021, a fall of 0.6 percent against 2020’s figure. Knight Frank says this was a less significant drop than expected, given the pandemic’s impact on occupancy. EBITDARM for the nursing-care sector also improved slightly by 0.1 percent on the prev