The long-term influence of Covid-19 on the property sector dedicated to healthcare facilities
In the wake of the COVID-19 pandemic, the landscape of healthcare real estate is undergoing a significant transformation. This shift is driven by increased demand, evolving healthcare delivery models, and lessons learned from the pandemic.
Patient-Centered and Flexible Design
Medical office buildings and healthcare facilities are now prioritising patient experience, with adaptable spaces that can serve multiple functions and adjust to changing healthcare needs. This flexibility supports both routine care and potential surge capacity, improving pandemic preparedness.
Standalone and Community-Focused Facilities
There is a growing orientation towards standalone healthcare facilities that better serve local communities by providing accessible, decentralized care. This trend aligns with a larger real estate shift to design spaces that foster social connection and community interaction.
Emphasis on Sustainability and Wellness
Sustainable healthcare infrastructure remains a priority post-pandemic, with design incorporating wellness features such as air purification, natural light, and calming environments, supporting both physical and mental health outcomes.
PropTech and Advanced Technologies
The integration of PropTech, including AI-driven design tools and smart security systems specialized for healthcare properties, is rising rapidly. This technological integration aims to improve emergency access, operational efficiency, and enhance patient and staff experiences.
Pandemic Preparedness
Healthcare real estate now also incorporates design elements that support infection control, social distancing, and emergency response—features amplified by lessons learned during COVID-19. This includes flexible spaces, improved ventilation, and infrastructure that supports rapid adaptation to health crises.
Adaptability is crucial due to the rapid pace of technological change and the likelihood of more common large-scale pandemics in the future. The Covid pandemic has expedited change in healthcare, not only in how healthcare settings respond to a pandemic but also to technology, lifestyle, and economic factors.
The UK's undersupply of necessary healthcare facilities was highlighted during the Covid pandemic. The principles of the "15-minute neighbourhood" - neighbourliness, support for local businesses, and sustainable travel - have become central to the masterplanning of large-scale new communities and the function of existing communities.
Amendments to the Town and Country Planning (Use Classes) Order in 2020 allowed for greater change of use between various commercial, business, and service use classes without the need for a full planning application. This flexibility is expected to facilitate the rapid construction of new healthcare facilities in response to future pandemics.
Telemedicine (including digital operating theatres, robotics, and artificial intelligence) is expected to impact on facility sizes, as shown by the evolution of community diagnostic centres. The expedited adoption of emerging technology in the health sector post-Covid has led to a significant increase in phone or video conference GP consultations, with 50-70% of consultations now being conducted this way.
In June 2023, Carter Jonas achieved planning consent for a new Community Diagnostic Centre in Barking, Havering and Redbridge University Hospitals NHS Trust. Many healthcare providers are investing in remote patient monitoring of chronic conditions, which may reduce demand for outpatient services.
China plans to add more than 28,000 new hospital beds, while India anticipates capacity for a further 24,000. The continued growth in ambulatory care will be key to providing faster surge capacity and fewer disruptions than temporary hospitals.
WSP's report "Hospitals After COVID-19: How Do We Design For An Uncertain Future?" states that work is underway worldwide to review building regulations and standards for hospitals and their operations. In March 2020, the UCL's Bartlett Real Estate Institute theorized that the Covid pandemic would significantly impact the built environment.
81% of respondents in a 2022 poll by Policy Exchange put new, modern healthcare building as one of the top three priorities required of Government infrastructure. As we move forward, it is clear that the future of healthcare real estate will be defined by patient-centric, sustainable, technology-enabled, and community-oriented design principles.
- In the context of the COVID-19 pandemic, there is an increasing emphasis on community-focused healthcare facilities, aligning with a broader real estate trend to design spaces that cater to local communities and foster social connections.
- To better accommodate changing healthcare needs and prepare for future pandemics, medical office buildings are being designed with patient-centered and flexible spaces, which can serve multiple functions and adapt to evolving healthcare policies.
- Post-pandemic, the importance of sustainable healthcare infrastructure, incorporating wellness features and design elements that support infection control and emergency response, has become crucial in real estate investing, particularly in the development of new community diagnostic centers.
