Care home property market outperforms other sectors
The healthcare sector has, according to Savills, shown marked resilience to the property market downturn. Emerging as an asset that offers long-term income security, income returns over the last five years average 6.7% per annum as opposed to a 5.4% average seen for all property types. This resilience has been reflected in investor sentiment as yields have moved out by only half that seen in other sectors with prime yields on medical centres now in the region of 6.25% to 6.75% and care/nursing homes at 7.5% to 8%.
The research says total returns over the pa