Figures Finland Healthcare Q3 2023

November 16, 2023 10 Minute Read

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The Finnish social infrastructure* sector recorded nearly €1.9 billion in investment volume last year with several large-scale transactions above €50 million driving the activity to new record level. In 2023, the Finnish investment market has witnessed a slowdown due to the continued rise in interest rates and the shift in the pricing environment. The healthcare investment volume for the first three quarters of the year was €244 million, down 83% (y-o-y). 

The prime elderly care yield is standing at 5.00%, and the prime child day care is at 5.50% in October 2023. Rising interest rates and the increased cost of capital have led to a 40-bps increase in the healthcare sector prime yields during 2023.

Investors remain interested in the social infrastructure sector due to the demographic and structural megatrends that are driving demand in many subsectors within this growing sector despite the increased uncertainty. Social infrastructure provides long-dated inflation-linked income profiles, where the typical leasing terms are between 10-15 years with strong public sector covenants.