Demand for European medical office buildings is exceeding supply, driven by structural shifts in healthcare delivery and growing interest in modern, purpose-built facilities.<\/p>\n
International real estate advisor Savills reports that, while the buildings are well-established, liquid and institutionally recognised in the United States, Europe is at a far earlier stage of maturity. <\/p>\n
Market development varies significantly by country.<\/p>\n
Germany leads in market development, the Netherlands is gaining momentum, while France and the UK are constrained by existing healthcare system structures.<\/p>\n
Tom Atherton, strategy & market intelligence manager at Savills, said: \u201cThe combination of ageing populations, rising chronic disease and policy-driven care decentralisation will continue to fuel long-term demand for outpatient facilities. <\/p>\n
\u201cMedical office buildings stand to benefit directly, offering investors stable, counter-cyclical income streams tied to essential services. <\/p>\n
\u201cAs transactional evidence builds, lease structures become more standardised and occupier networks mature, European MOBs are set to evolve into an institutional asset class over the next decade, with defensive characteristics comparable to primary care or hospital real estate.\u201d<\/p>\n
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Following record investment volumes of nearly \u20ac1 billion in Germany and the Netherlands in 2021, activity slowed in 2023-2024 as rising interest rates, economic uncertainty and the limited availability of portfolios prevented the sector from sustaining consistent year-on-year transaction volumes. <\/p>\n
Healthcare expenditure continues to rise in EU countries, with annual growth accelerating from 3.4% in 2015 to 2019 to 6% between 2019 and 2022.<\/p>\n
When combined with long term demographic pressures and the shift from inpatient hospital care to outpatient and community-based delivery, this is creating increased demand for high quality, accessible healthcare facilities. <\/p>\n
With Germany and the Netherlands at the forefront of this transition to outpatient care delivery through reforms such as Ambulantisierung, Krankenhausreform and the Integraal Zorgakkoord, Savills noted that similar policy developments in France and the UK could unlock further opportunities for investors.<\/p>\n
With large scale portfolios in short supply, Savills expects continued upward pressure on rents and stabilising yields as market conditions normalise. Early movers are well placed to benefit from future yield compression and the long term defensive qualities of the asset class.<\/p>\n
Caryn Donahue, head of healthcare & senior housing at Savills, said: \u201cThe US demonstrates what a mature, liquid MOB market looks like, with multi-asset portfolios trading at scale and strong institutional appetite. <\/p>\n
\u201cEurope is at an earlier stage, but the fundamentals are equally compelling. As portfolios are aggregated we expect US capital to increasingly view Europe as an attractive market for deployment in this sector.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Demand for European medical office buildings is exceeding supply, driven by structural shifts in healthcare delivery and growing interest in modern, purpose-built facilities. International real estate advisor Savills reports that, while the buildings are well-established, liquid and institutionally recognised in the United States, Europe is at a far earlier stage of maturity. Market development varies […]<\/p>\n","protected":false},"author":1,"featured_media":6198,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n