Healthcare real estate as a hedge against market risks : a study of the investment opportunities and obstacles

Abstract

Healthcare real estate used to be a niche market within the commercial real estate sector, has gradually improved to a core-asset. It proves itself as a high yield and recession-resistive asset class, attracting more investments from both public and private sectors. Still many traditional investors are deterred to enter this market due to its high reliance of special knowledge about healthcare business. The thesis aims to repeal the specialties of healthcare real estate by reviewing five product types within this sector and studying key factors determining the success of new developments and acquisitions. Followed by interviews with professionals working in this field, the thesis presents an analysis of investment decisions by different types of companies and the implications on future development and investment opportunities. In the conclusion, recommendations of investment strategies are given based on various risk profile of different developers and investors who are planning to enter this new-core asset market.