Publications

- May 1, 2022: Vol. 16, Number 5

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Life sciences sector poised for growth in Europe

by Marek Handzel

The life sciences sector is “poised for growth” in Europe, backed up by strong investor appetite and strong fundamentals.

In its Real Estate Outlook volume 1 paper for 2022, UBS Asset Management Real Estate and Private Markets (UBS-AM REPM) says that the life sciences industry, which emerged strongly during the COVID-19 crisis, is set to continue to expand due to its fast-moving funding model and business goals. The manager explains that life sciences real estate demand is relatively unique as it has a clear correlation with venture capital funding coming into the sector. After companies secure funding, they have a short window of about a year to take on additional space to either conduct additional research and development or to manufacture drugs and treatments. This is net demand for new space, rather than churn, which predominantly drives the traditional office market.

“The consequence of the weight of funding going into the sector is that companies g

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