The UK’s healthcare property market is on course to reach record-breaking investment levels this year, with total deal volumes expected to hit £12 billion, according to new research by Knight Frank.
If completed, the figure would mark the highest annual investment ever recorded in the sector — more than three times the five-year average of £2.4 billion. By the end of the third quarter, healthcare property transactions had already reached £7.85 billion, surpassing the previous full-year record of £3.2 billion set in 2024.
A significant driver of this surge is Primary Health Properties’ £1.8 billion acquisition of Assura, which is set to complete in the final quarter of the year and stands to be one of the largest single healthcare real estate deals in UK history.
Ryan Richards, associate at Knight Frank, said the remarkable activity in 2025 has been driven by consolidation and merger activity, as both established UK operators and international investors seek to capitalise on scale efficiencies within the sector. “While PHP’s acquisition of Assura has gained the most attention, a number of significant whole-company deals in the second half of the year will cap off an exceptionally active period for healthcare investment,” he said. “The trend toward platform plays looks set to continue into next year, signalling that we may be in the midst of a multi-year boom for capital inflows to UK healthcare.”
Julian Evans, partner and global head of healthcare at Knight Frank, said the strong operational performance of the market in recent years had cemented healthcare property as one of the most attractive destinations for global investors. “The sector’s defensive characteristics enhance its appeal to diversified global investors seeking downside protection against persistent macroeconomic and geopolitical turbulence,” he said. “A number of international specialists have also seized the opportunity presented by 2025’s supportive market environment to establish a foothold in the UK.”
Knight Frank said it had completed £6 billion worth of healthcare transactions in the third quarter alone, with another £2 billion expected to close before year-end. The firm noted that this momentum underscores the resilience and long-term attractiveness of the asset class, with investors increasingly drawn to its stable income streams and potential for active management.
Evans added that 2026 could bring even greater inflows, as global uncertainty pushes institutional investors toward sectors offering both defensive stability and operational upside. “The UK healthcare property market is exceptionally well positioned to build on the record level of investment achieved this year,” he said. “The combination of long-term demographic trends, inflation-linked income and opportunities for active asset management will continue to attract capital at scale.”
With healthcare infrastructure now seen as a vital component of social and economic resilience, analysts believe the sector’s new wave of investment could usher in a period of structural expansion. If current forecasts hold, 2025 will go down as the year the UK healthcare property market firmly established itself as one of the country’s most dynamic investment frontiers.
