WEAKEST RESULT SINCE 2017
The healthcare investment market performed poorly in 2023, with a transaction volume of only €1.1 billion, missing the long-term average of €2.4 billion by approximately 55%. Currently, due to the sharp rise in interest rates, the healthcare investment market is in a consolidation and pricing phase. The after-effects of the pandemic and high price inflation are negatively impacting operator risk. Operators are unable to pass on the costs incurred to the customer, resulting in a lack of new products with attractive operator contracts. The German healthcare investment market is experiencing weak investment activity due to difficult access to debt capital and worsened financing conditions. Additionally, structural problems have resulted in major insolvencies in the sector, causing risk-averse investors to exercise restraint. The portfolio deals have been low in volume, amounting to €458 million, which is a 70% decrease from the long-term average.