Information and insight All about healthcare properties: Facts and trends

Time for (R)Evolution: “Ambient Assisted Living, artificial intelligence and demography-oriented neighbourhood development would revolutionise the lives of older people in Germany,” says Carsten Brinkmann.

Sticking to the beaten track and conventional ways of thinking hinder better healthcare service offers for people in need of care and thus let opportunities slip away. Legislative shackles are increasingly leading to a “one-class system”, exacerbating the loss of individuality.

New product: For the first time, TERRANUS is publishing an investment cost index for nursing homes. “And thereby an excellent indicator for tracking changes in rent,” explains Markus Bienentreu. The index starts with the assessment of the state of Hamburg, and the other federal states will gradually follow.

First analyse, then invest: whether the purchase, construction or operation of a healthcare property pays off or not depends on a lot of factors. What does local purchasing power and population growth look like? Are the quality of living conditions right and how high are operating costs compared to the competition?

2016 – a year of superlatives. Never before have more care properties in Germany changed hands. More than € 1.75 billion were turned over in portfolio deals alone. Markus Bienentreu explains why the data still leave a lot to be desired as far as precision goes.

Demographics bump into reality: Germany will have 3.4 million individuals in need of care by 2030. Around one third, in other words, more than one million people, will then need an inpatient care place. To cover rising demand, 250 new care homes comprising 80 places each will need to be built – every year!

Around 6 percent yield per year is enticing – especially in a growth market entailing moderate risk. Markus Bienentreu, CEO at TERRANUS, explains what matters when buying healthcare properties.