The U.K. healthcare property market saw record investment volumes in 2020, with sales activity totaling £2.7 billion (€3.1 billion/$3.7 billion) despite the COVID-19 pandemic, 55 percent higher than the previous year, according to Knight Frank, as investors increasingly seek stable returns and long-term secure income.
This comes as healthcare property has seen surging interest from investors in the traditional sectors, such as care homes and private hospitals, as well as rising demand for more specialist assets and providers, such as mental health, learning disability and children’s services including children’s homes, foster care and schools.
An increasingly broad group of investors is targeting U.K. healthcare, including a rising weight of institutional capital, a strengthening selection of REITs and a growing level of overseas investors. Overseas capital has significantly increased, accounting for 72 percent of healthcare transaction volumes in 2020, markedly