Curative Healthcare Real Estate: resilient and profitable
Institutional investors can no longer overlook the potential of curative healthcare real estate, says Joost de Baaij in Achmea Real Estate’s new Whitepaper. Both primary care facilities such as healthcare centres and secondary care locations like treatment clinics offer solid returns, predictable cash flows, and clear societal value.
In an era of demographic pressure, rising healthcare costs, and growing sustainability demands, this segment offers the opportunity to combine financial and social returns.
The position of curative healthcare real estate is compelling in terms of risk, return, and impact. Net returns are structurally higher than in many other real estate segments, while volatility remains low. Due to the regulated nature of the healthcare market, correlation with economic cycles is limited. This makes the segment well suited for portfolios with a low-risk profile and a long-term investment horizon.
There are, however, some challenges: limited availability, slow scalability, and the need for specialized expertise demand active commitment. These are not barriers but prerequisites for success. Investors who now invest in knowledge, partnerships with healthcare providers, and targeted acquisition strategies can benefit from a relatively untapped institutional market with strong long-term prospects.