Investment volume Dutch healthcare real estate exceeds 1 billion euros

Increased interest from international investors
Just as in the residential investment market, international investors show an increasing interest in Dutch healthcare real estate. The percentage of international investment in the transaction volume grew from 28% to 38% in 2019 and this is largely due to a number of large transactions. An example of this is the transaction with US-based investor Heitman that purchased the De Leyhoeve residential care landscape in Tilburg for 84 million euros. In addition to American funds, institutional and other investors from countries such as Belgium, Germany and Luxembourg also contributed to the growth in the number of international investors. The expectation is that these investors will continue to strengthen their position in the coming years.

Large shortage of new-build senior housing
According to trade association Actiz, investments in the billions are needed in the coming years to compensate for the housing shortage for the elderly. In the Dutch Senate, too, the need for senior housing has been discussed based on the assumption that the increase of homes in this segment will lead to a better flow-through throughout the housing market. Only about a third of the transaction volume in healthcare real estate is new construction. The percentage of new construction fell from 41% in 2018 to 36% in 2019. Because expansion of the housing stock is lagging behind and the demand for suitable housing for seniors is growing, the shortage of these homes is increasing further.

Favourable investment climate
Partly due to the increasing number of seniors, investments in healthcare real estate are future-proof. Investors also have a lot of capital available to invest in healthcare real estate and senior housing. This is important because the shortage of senior housing cannot only be solved by realising new-build projects. Also, investments are needed in the often outdated existing inventory, which is largely owned by housing associations and healthcare institutions.

Marijn Snijders, managing director Capital Value, commented, “Our analysis shows that in 2019, housing associations and healthcare institutions put a great deal of existing healthcare real estate onto the market. This year they sold no less than 500 million euros in healthcare real estate. We expect that the supply of these parties will continue to grow in the coming years. “