SHHA Summit: investment in healthcare to rise by 82% in Q2
Investment in healthcare has rebounded in Q1 2025 and the recovery is expected to continue this year, delegates heard at the SHHA Summit this week, which was hosted by Deloitte at their Brussels offices.
“In Q1 investment was €2 billion, which is a 50% increase on Q1 2024”, said John Gladstone, Lead Director, EMEA Healthcare Capital Markets, JLL, in his “Investment outlook for Senior Housing and Healthcare” presentation. “In Q2 2025 we estimate senior living/care home investment to be 82% up on Q2 last year.”
In the 12 months to the end of March 2025 total investment in the sector was €9.1 billion, which is still 15% down on the previous 12 months, Gladstone said, but the recovery has started and is expected to continue.
The market is becoming polarised, as the top 10 investors accounted for half of the capital deployed over the past 12 months. The biggest players are Welltower, Omega Healthcare and Assura but in the top ten there are also new entrants like Stadt Hamburg, StepStone RE and Meadow Partners.
Large deals have returned: M&G’s European Living Fund made its first healthcare purchase in Erfstadt, in Germany, while Omega Healthcare Investors acquired a £241 million portfolio of 46 care homes in the UK.
“Large entity acquisitions are dominating the European healthcare landscape” said Gladstone. “Look at the Aedifica/Cofinimmo €12 billion merger, or CareTrust’s £650 million acquisition of Care REIT, or the recent PHP and KKR/Stonepeak bidding war for Assura.”
There are also joint ventures happening, like the €700 million Swedish care home partnership between Nrep and Sehlhall Fastighet or the Dutch care home JV between emeis and NLV.
“The sector is recovering despite political uncertainty and tight operator margins”, said Gladstone. “Listed healthcare has outperformed other property sectors this year, with share prices up 24% on average, and occupancy rates have grown from 85% in 2021 to 93% on average, reaching 99% in Finland.”
Another positive for the sector is the emergence of new senior living products like co-housing, intergenerational living and Integrated retirement communities with services and care, as these hybrid models are attracting rising investment.
In these uncertain times, healthcare is seen as a secure investment, according to JLL, and listed healthcare has outperformed other property sectors in 2025, as share prices were up 24% on average.
