Report | Intelligent Investment
2023 Asia Pacific Life Sciences Real Estate Trends
March 23, 2023
Meanwhile, recent years have seen the proliferation of life sciences clusters in Asia Pacific to support the R&D operations of local and multinational firms. All of these trends combined with the growing demand for tech talent and the adoption of hybrid working are leading life sciences companies to rethink their real estate strategy.
This report explores the latest life sciences real estate trends and their impact on real estate strategy. It also examines the latest developments in R&D Laboratory and Office portfolios, as well as investment demand.
R&D Laboratory Portfolios: As of the end of 2022, there was more than 100 million sq. ft. of R&D laboratory space in Asia Pacific. Solid leasing demand is driving the emergence of new life science hubs.
Office Portfolios: Most life sciences firms are seeking to keep costs under control and are therefore unwilling to add to their office portfolios. Workplace transformation and efficiency are a major focus.
Investment: Investment demand remains upbeat, with US$18 billion of funds raised for Asia Pacific life sciences real estate in the past five years. However, a shortage of assets for sale meant just US$717 million of direct investment was recorded in 2022.
India is one of the fastest growing Life Sciences (LS) markets in the world. The LS sector in the country is poised to see multi-fold growth by 2030 led by fast-increasing population, rising life expectancy, a strong industrial base and inclusive government initiatives.
China’s pharmaceutical and life sciences industry has seen rapid growth in recent years as the country’s technological and industrial revolution gains momentum, with the onset of the COVID-19 pandemic in 2020 providing the sector with added impetus for expansion.
The life science industry is expected to be a major growth sector in Australia over the coming years contributing to occupier and investment activity growth within commercial property.