Rapid expansion is taking place across many of Europe's largest PE-owned nursing home groups. We've compiled data on growth in the revenue, number of facilities and number of beds for ten of EMEA's largest PE-owned nursing home groups.
The past three years have been the most inflationary in decades for Europe. Price increases have now been brought back into a more normal range, at least for consumers. But tight labour markets and upwards pressure on wages are continuing to push up costs for labour intensive industries such as health care.
Who are the biggest health care real estate investors in Europe? As part of our deep-dive into Europe's health care real estate investment landscape we've put together a list of investors with over €500m health care assets under management.
Yields for elderly care properties have risen substantially since 2021 across major European markets, as property valuations have been pushed downwards due to falling demand from investors. But yields for government bonds have risen faster, meaning the risk premium for investing in elderly care real estate is now much lower than it was two years ago.
Global strategy consulting firm L.E.K.'s special report "Hospital priorities: strategic implications and insights for healthcare providers" reveals promising trends for hospital recovery in key Asian markets. The full report is available online, but here are some highlights.
Looking at OECD data on the number of beds in residential long-term care facilities per 1,000 people aged 65 and over across 27 European countries, there is a very clear pattern: the richer northern and western European countries tend to have a more bed capacity relative to the size of their elderly population than the poorer Southern and Eastern European countries. But this correlation is far from perfect. There looks to be a significant opportunity for new elderly care developments in the European countries which have a much lower capacity than you would expect based on their GDP per capita.
Both private pay, and especially out-of-pocket payments, decreased during the pandemic. OECD figures for out-of-pocket payments in 2021, and the all private spending figures in 2022 show these are recovering.
In last week's infographic we looked at the for-profit nursing home stock in major European markets. This week we look at the for-profit (as well as not-for-profit and public) hospital stock in the UK, France, Germany, Italy, Spain, Portugal, Poland and Ireland.
Care homes comprise the majority of investment volumes within health care real estate in Europe. There are tens of thousands of care homes across Europe, but it is typically only those in the for-profit sector that are available to be acquired by real estate investors. In this infographic we look at the care home stock in Europe's four major markets for health care real estate investment - Germany, France, Spain and the UK - and provide estimates of how much are operated by for-profits.