Business Outlook 2025 | Care - France

Real estate investment volume

In 2024, the healthcare investment volume in France remained resilient, with a transaction volume of circa €500 million, largely driven by notable deals in both the care home and acute care markets, including the first entry of two international investors. The 2024 total investment volume is forecasted to reach €800 million, which, although 20% below the last-10-year average of circa €1 billion, represents a relatively moderate decline compared to the significant decline of other real estate asset sectors, such as the much sharper drop in offices, which reportedly decreased by up to 50% year on year.

Insights

Investment in care homes was almost at a standstill in France in 2022-23, however following that period most of the investments have shifted towards healthcare clinics. 2024 confirmed this trend, with health clinics accounting for circa 60% of the total investment volume.

On the other hand, the market entry of international investors has proven that there is a renewed interest for care homes, supporting the long-term demand for this sector, which is starting to benefit from the continued rebranding and refinancing efforts of the leading operators.

Main deals

The main highlight at the beginning of the year was the acquisition of Clinique du Parc in Lyon, a prime asset reportedly transacted at circa 5.6% NIY by the recently created SCPI Patrimoine Santé AEW. This was their first healthcare acquisition.

• In the second half of the year, Emeis announced the €185 million buy-back of eight clinics that they previously leased.
• In October, Parkway Life REIT announced the €111 million sale-and-leaseback of an 11-care home portfolio in France leased to DomusVi, marking their first investment in Europe.
• In November, Healthcare Activos announced their first acquisitions in France, with one care home in Paris 8 operated by Clariane, and another care home in Bordeaux leased to Colisée.

• Interest rate cuts driven by central banks point to a stabilisation of transaction yields across the real estate market in 2025, including the healthcare sector
• Investment volumes should return to normal, neighbouring the €1 billion mark
• As new healthcare investment vehicles continue to rise and new international investors enter France, appetite for healthcare opportunities will remain strong
• Major healthcare operators will continue to actively divest their real estate assets to stabilize their finances, attracting attention from investors interested in sale-leasebacks
• The office market downturn will keep creating opportunities for repurposing existing buildings into senior housing and medical offices