UK healthcare property returned 9% in 2014, up from 5.6% the year before and outperforming all other sectors, according to the IPD UK Annual Healthcare Index.
The index measures 1,073 healthcare properties with a combined value of £4bn.
The recovery in the market was supported by improved total returns across all areas, notably London primary, which returned 11.8% 2014, up from 7.2% in 2013; Midlands north and Wales primary, which returned 10.4%, up from 7.2% in 2013; and the secondary UK sector, which returned 6.3%, against 3.2% in 2013.
Capital growth on all healthcare property entered positive territory for the first time since 2011, hitting 2.1%.
However, primary healthcare assets have experienced positive capital growth since 2009. The largest rise in capital growth over 2014 was experienced in London primary healthcare, which rose from 0.8% to 5.2%.
Mark Weedon, vice president at MSCI, said: “The index data shows that healthcare has outperformed all commercial property on an annualised basis since the launch of the IPD UK Annual Healthcare Index in 2007.”
