Investors, developers and providers are looking to significantly increase their presence in the UK healthcare sector, according to CBRE’s 2024 UK Healthcare Sentiment Survey.
The company’s research found 62% of investors are intending to increase their allocation to healthcare, 70% of developers are preparing to take on more healthcare projects and 50% of providers are planning to grow their portfolios over the next five years.
London is expected to have the greatest demand for care services over the coming years, according to 40% of developers and providers. Developers are also looking to the Midlands and the East of England to address an acute undersupply in these regions.
The vast majority of providers are looking to acquire existing care homes either alongside new developments (60%) or as a standalone strategy (23%). Just 18% of providers are looking to acquire new schemes.
Sarah Livingston, co-head of UK healthcare at CBRE, said: “Providers want to grow their portfolios to support the provision of much needed care beds in a number of subsectors, notably senior living and specialist care. The synergies across all three respondent pools can hopefully act as the catalyst in a positive cycle of supply and demand over the coming years.”
Tom Morgan, co-head of UK healthcare at CBRE, added: “Healthcare is a resilient asset class – it offers robust demand levels and traditionally, long lease terms. However, not all investors can adopt a ‘wait and see’ approach and as a result, we’ve seen many becoming less risk averse in order to deploy capital. They’re now taking advantage of the opportunity afforded by shorter leases, rather than focusing on income duration.”
