Beyond the lab: The evolution of global real estate investment in life sciences

15 July 2021

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Debtwire is pleased to present Beyond the lab: The evolution of global real estate investment in life sciences, published in association with Ropes & Gray. This report delves into the evolution of life sciences-related real estate, alongside an analysis of the impact that COVID-19 has had on the sector.

Key findings from the report include:

  • Pharmaceuticals and biotechnology R&D will attract investment in the near term, but both are set to be superseded by medical technology in the long term. Over the next 12-24 months, 60% of real estate investors and 66% of life sciences companies believe the pharmaceuticals sector will attract the highest real estate investment, followed by biotechnology R&D (56% of real estate investors and 54% of life sciences companies). However, when looking at the next three to five years, 75% of real estate investors and 62% of life sciences companies expect the medical technology sector to emerge as the frontrunner for real estate investment.
  • Real estate investors expect China to lead the way. Almost two-thirds of real estate respondents expect China to secure the most life sciences-related real estate investment over the next five years, followed by the EU (54%) and Japan (34%). Investors point to India as the hotspot for such investment further down the line, with 94% of real estate investors pointing to the country as the top target in six to ten years.
  • Life sciences-related real estate investment has accelerated in the face of the COVID-19 pandemic. Just over three-quarters of real estate investors say the pandemic has been a significant catalyst for accelerated investment into life sciences. However, just 24% of life sciences companies say the same. In addition, 70% of real estate investors and 82% of life sciences companies say COVID-19 will be a significant catalyst for more exacting climate change/environmental, social and corporate governance requirements.