The results of the IPD UK Annual Healthcare Property Index have been revealed. The index shows that there has been a 7.9% return on healthcare property in the UK. This return was from the end of year 2016, but the healthcare sector has outperformed all other sectors for property return.
The index was sponsored by Aitchison Rafferty and carried out by a worldwide leading provider of support tools for investment decisions. The index measured 1,093 healthcare properties which would be valued at a total of £5 billion. The returns for the index are calculated taking into account a mixture of primary care properties, all of which are leased principally to the NHS and for GP practices as well as for secondary care assets which includes care homes, specialist treatment centres and hospitals.
The result s of the index means that the healthcare sector has managed to stay resilient over the last year and through challenging market conditions. This means that the sector has managed to outperform all other property sectors. The other property sectors in the index include retail, office, industrial and residential.
The total return of the healthcare sector has seen a reduction, as the total returns was 10.3% in 2015. However, it is the third year in a row that there has been positive capital growth for the index. The returns in this sector have been slow and consistent, but now the sector has outperformed others as part of the IPD UK Annual Healthcare Property Index.
There has now been a decade of indexes carried out which will allow industries to track their progress throughout the time period. Over this time, the healthcare system has had a total return of 6.6% and has done better than all other asset classes, which included equities, bonds and listed real estate.
