• Healthcare properties are on their way out of being a niche asset class, but price transparency is still fairly limited and subject to quite different perceptions
  • In the light of a persistent ultra-low interest rate environment and the relatively cyclical independence of healthcare related real estate assets, we observe an ongoing accelerated repricing especially of care homes
  • Therefore, we estimate that prime yields for care homes to decline by another 25 base points to 4.25% in Q1 2020
  • Given the asset class inherent fundamentals and increased liquidity, yields for healthcare real estate will move closer to the values of other well-capitalized, more core-ish real estate asset classes (e.g. hotels, which are currently priced at 3.75%)