Real estate growth despite wider economic uncertainty
Insight
EMEA Life Sciences Industry Perspective and Cluster Report
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Discover current and future trends of Europe's life sciences industry in our comprehensive EMEA Life Sciences Industry Perspective and Cluster Report. The report examines key drivers impacting the industry and their implications for real estate markets.
The report contains enhanced cluster analysis with three distinct subsector rankings, evaluating 43 European locations based on criteria specific to:
Biopharma research and development (R&D) - highlighting clusters that excel in lab research space
Digital health & tech R&D - identifying markets requiring premium office space
Pharmaceutical manufacturing - showcasing locations ideal for warehouse and distribution assets
As the Middle East and Africa increasingly develop their life sciences capabilities, the report examines their most promising city-clusters and the opportunities they present.
Key trends
1. Increasing global competition and tariff are incentives for Europe to build on its strong life sciences R&D and manufacturing credentials.
As underlined in the Draghi report on the future of European competitiveness, the region’s overall capacity to innovate will be crucial for it to maintain its status as a global economic powerhouse.
Tariffs bring uncertainty to the pharmaceutical sector, whilst highlighting Europe’s leading trading position.
2. Rising Venture Capital flows are a testimony to Europe’s innovation capacity in the sector.
3. AI is having a dual impact; on scientific discovery and on real estate management
Through the application of Artificial Intelligence & Machine Learning in the drug discovery phase, companies can focus earlier on more promising molecules and hope to cut down the time and cost to get a drug to market.
The increasing integration of biological and computer sciences is driving demand for versatile, hybrid spaces capable of supporting both conventional lab work and data-intensive computational activities.
4. The sector’s commitment to sustainability is rapidly gaining pace
5. New supply delivered by investors is addressing Europe's historical lab space shortage
Private investor led stock is rapidly being delivered to answer the lack of suitable space. The real estate market for life sciences is experiencing fundamental shifts, driving increased demand for newly constructed, purpose-built facilities.
Different lab markets across Europe will achieve varying rental premiums between fitted lab space and traditional office space. This is not only due to the additional construction and fit-out costs but also linked to the maturity and the individual supply/demand dynamics of each cluster. Premiums tend to increase over time as life sciences markets become more established.
6. Life sciences clusters from Europe to the Middle East and Africa have distinctive strengths.
Want to discover our 2 new thematic benchmarks? Download the report to discover how the 43 European clusters rank for “Digital Health R&D” and “Pharmaceutical Manufacturing”.
Download the report to discover Africa’s life sciences landscape and how some of its main clusters rank.
Download the report for unprecedented insight into each cluster's unique strengths, helping investors, occupiers, and developers make more informed real estate decisions aligned with specific subsector needs.