Two Thirds of Investors Boosted Their Healthcare Allocation in 2025, CBRE Finds

Why It Matters

Healthcare real estate is cementing its status as a core asset class, reshaping capital allocation across mainstream property portfolios and attracting new sources of funding.

Key Takeaways

• 68% investors raised healthcare allocation in 2025.
• $12.5 bn invested in care homes, 79% of sector.
• Welltower spent $6.5 bn on Barchester, $1.5 bn on HC‑One.
• 65% plan higher 2026 allocation; 38% target elderly care.
• Joint ventures preferred funding route for 48% of investors.

Pulse Analysis

The momentum behind healthcare real estate reflects broader demographic and fiscal trends. An aging population and rising demand for senior‑care services have turned care homes into revenue‑generating assets, prompting institutional investors to treat them as stable, inflation‑hedged holdings. This shift aligns with the sector’s historically low vacancy rates and long‑term lease structures, making it attractive amid volatile office and retail markets.

CBRE’s 2026 Healthcare Sentiment Survey underscores the scale of this transition. Approximately $12.5 bn flowed into care‑home properties last year, driven largely by Welltower’s landmark $6.5 bn acquisition of Barchester and a $1.5 bn purchase of the HC‑One portfolio. Those deals not only expanded Welltower’s footprint but also set a pricing benchmark that other operators are likely to follow, reinforcing the perception of healthcare as a mainstream, high‑growth asset class.

Looking forward, investors are eyeing joint ventures and infrastructure‑linked capital as preferred pathways to scale. Nearly half of respondents cited partnerships as the optimal route to fund new acquisitions, especially in the elderly‑care niche where expertise and operational efficiencies are critical. As transaction volumes normalize after last year’s peak, the sector’s resilience and the growing appetite for collaborative financing are set to sustain robust capital inflows and further embed healthcare real estate within diversified portfolios.