The German healthcare real estate market reached a transaction volume of approximately EUR 1.82 billion in the first half of 2026. This represents a significant increase compared to the same period of the previous year (H1 2025: approximately EUR 887 million), with the volume more than doubling. The total for 2025 (EUR 1.22 billion) was also already exceeded by around 50 percent. The second quarter of 2026, in particular, contributed significantly to this result with a volume of approximately EUR 592 million. This development marks the strongest first half-year for healthcare real estate in Germany since 2018.
According to Jan-Bastian Knod, Head of Healthcare Advisory at Cushman & Wakefield, the first half of 2026 represents a turning point for this market. National and international investors are increasingly focusing on asset classes with high crisis resilience and stable, demographically supported revenue models. The stability of the care sector following the Covid-19 pandemic creates increased planning certainty, which is expected to boost investment readiness in this segment in the second half of 2026 and beyond.
Transaction activity in the second quarter of 2026 was largely shaped by a large-volume, nationwide portfolio transaction in the inpatient medical care sector. This transaction highlights the continued interest of institutional investors in diversified portfolios with established operator structures and confirms the liquidity in the healthcare real estate market. Around EUR 86 million in the second quarter was attributed to nursing properties, of which EUR 57 million related to nursing homes and EUR 29 million to assisted living. Medical care facilities recorded investments of approximately EUR 506 million, with EUR 444 million for inpatient care and EUR 62 million for outpatient care. The assisted living segment saw a decline compared to the previous year, primarily due to a lack of product and low new construction activity. Prime yields for healthcare real estate remained stable in the second quarter of 2026, which is attributable to high demand and limited availability.
- —Nursing homes: 5.10 percent
- —Retirement residences (assisted living): 4.50 percent
- —Outpatient medical care facilities (MVZ): 4.75 percent
- —Inpatient medical care facilities (clinics): 5.75 percent
Political framework conditions also contribute to the positive market development. On 6 March 2026, the Bundestag passed the Hospital Reform Adaptation Act (KHAG), which makes the hospital reform from late 2024 more practical. The introduction of the standby fee will be postponed by one year, the years 2026 and 2027 are considered budget-neutral, and full financial effectiveness is planned from 2030. Furthermore, the federal states will have more say, and implementation deadlines have been extended, creating more planning certainty for operators and investors.
Since January 2026, the Hospital Transformation Fund (KHTF) has been available, which is intended to invest up to EUR 50 billion in the modernisation of hospital structures by 2035, with the federal government contributing approximately EUR 29 billion. These funds can also be used to support university hospitals in the future and offer investors additional refinancing options for modernisation and ESG measures in existing properties. The trend towards outpatient care is expected to continue and accelerate; the current Hospital Report 2026 from the Scientific Institute of the AOK (WIdO) shows that around 60 percent of fully inpatient cases have the potential for outpatient care. This opens up positive development and leasing prospects for outpatient medical centres and doctors' surgeries.
Jan-Bastian Knod expects a consistently high investment momentum for the second half of 2026, particularly in large-volume, supra-regional portfolios and outpatient care concepts. The current momentum could make 2026 one of the strongest years for the German healthcare real estate market in recent history.
