Investor demand for life sciences assets accelerates
The swift development of vaccines during the pandemic has shone an even brighter light on the importance of the life sciences industry amid the already long-term, growing needs of ageing populations.
Occupiers and real estate investors have taken notice in recent years, with 2020 seeing 17.4 percent year-over-year growth in life sciences office leasing in Asia Pacific, underpinned by organic expansion and flight-to-quality relocations — led by markets such as Shanghai, Beijing, Tokyo and India’s Bangalore and Hyderabad — compared with a 25 percent decline in the overall Asia Pacific leasing market, according to CBRE Research’s recent A New Era of Life Sciences Growth: Opportunities for Occupiers and Investors report.
Despite Asia Pacific’s large market size, health expenditure in the region was half that in the United States (US$3,475 billion) in 2018, notes the report. While mature markets such as Japan and Australia spend about 10 percent of their