Ageing demographic across Europe fuels record investment in healthcare assets, says CBRE

European healthcare real estate investment reached a record €23.9 billion in 2025, highlighting the sector's growing appeal to institutional investors seeking resilient income and long-term growth opportunities supported by powerful demographic trends.

According to CBRE's latest European Healthcare Real Estate 2026 report, healthcare has moved firmly into the investment mainstream, with transaction volumes reaching an all-time high in 2025 and a further €5.6 billion invested in the first half of 2026, up 27% year-on-year.

The sector's momentum is being driven by Europe's ageing population. By 2034, the number of people aged 65 and over across Europe is expected to increase by 31.3 million, generating sustained demand for elderly care, healthcare facilities, primary care infrastructure and community-based services.

Investor interest continues to strengthen as healthcare's reputation as a defensive, needs-based real estate sector grows. CBRE's research found that allocation preferences among alternative investors increased from 19% in 2023 to 40% in 2025, reflecting rising demand for healthcare's stable cashflows, long-term leases and inflation-linked income characteristics.

Cross-border capital is playing an increasingly important role in the market, accounting for more than half of European healthcare investment activity during the first half of 2026. Healthcare is also attracting growing interest from infrastructure investors, reinforcing its position as a key social infrastructure asset class.

Care homes remain the dominant investment theme across Europe. Investment into nursing homes reached €5.5 billion in 2025, almost double 2023 levels, as investors continue to target operationally resilient assets supported by long-term demographic demand. Primary care facilities and medical office assets are also seeing increasing levels of interest.

Country Spotlights

In Finland, healthcare investment volumes increased 160% year-on-year, helping healthcare become the country's largest investment sector in 2025. Cross-border capital accounted for the vast majority of activity, highlighting the market's growing international appeal.

Germany recorded a 48% year-on-year increase in healthcare investment volumes during the first half of 2026, supported by healthcare reform initiatives and increasing demand for outpatient and community-based care facilities.

In Italy, long-term demographic trends are creating significant investment potential. The proportion of the population aged over 65 is projected to increase to 36% by 2050, supporting demand for healthcare infrastructure and senior living assets despite a limited supply of investable stock.

Meanwhile, Spain recorded a record €1.4 billion of healthcare investment in 2025. Strong growth in private healthcare demand, rising health insurance penetration and an ongoing shortage of care home capacity continue to underpin investor interest in the market.