Christie & Co analyses healthcare land & development markets in latest report
Today, specialist business property adviser, Christie & Co, launched its Care Market Review 2023 report, which analyses a range of topics relating to the UK healthcare business market including the healthcare land and development markets.
Business. Built around You.
Your expert business property advisers
The report notes that a combination of construction cost inflation, cost and availability of capital has resulted in a challenging environment for the delivery of new build schemes. The underlying business case for purpose-built care homes, however, remains robust and the need for future-proof market-standard beds in many locations across the UK is unchanged.
Exiting the pandemic, it is evident that retrofitting infection control measures in older converted assets with shared facilities is challenging. The latest generation of care home designs and specifications are far better positioned to deal with similar events in the future, further underpinning the need for purpose-built accommodation.
The planning system has become increasingly unpredictable, with refusals being more commonplace which is restricting the supply of sites with planning permission available to the operator market. Whilst correction has taken place in many property sectors, land values for high-quality sites with planning permission in the care market have held firm, driven by a lack of overall ‘oven-ready’ supply. Additional value creation is also taking place in the UK by way of Opco multiples being achieved by good quality leasehold platforms, which has also assisted in supporting land prices in the sector.
Jordan Rundle, Director – Healthcare Development & Investment, comments, “We are starting to see more domestic and international capital entering the market, attracted by the defensive characteristics of needs-driven Operational Real Estate and the excellent ESG credentials new care homes offer to investors. This additional liquidity, accompanied by the continued imbalance between demand and supply of market-standard beds to cater for the rapidly ageing demographic, will support sustainable levels of transactional activity for consented care home development sites in both the short and long-term.”
The report also includes an analysis of the healthcare capital markets, transactional market, operational costs, shifts in local authority fee rates, operator sentiment, the German healthcare market, and the finance and insurance landscapes from Christie Finance and Christie Insurance respectively.
To read the full Care Market Review 2023 report, visit: https://www.christie.com/care-market-review-2023/
-------------------
For further information on this press release, contact:
Phoebe Burrows, Corporate Communications Manager
P: 07540 063 598 or E: phoebe.burrows@christie.com
Visit Christie & Co’s Business Search page to find out more about current listings.