The growing prominence of the life sciences industry has sparked a wave of real estate development globally, with Beijing and Shanghai leading global life sciences construction activity with more than 13.7 million sq ft combined, according to a new report from CBRE.
CBRE analysed many of the key life sciences markets across the globe and found that most demand drivers are improving.
“Global venture capital (VC) investment in life sciences companies last year exceeded the 2019 total by 43%, with in-progress construction of lab space globally totalling more than 35 million sq ft last year.
“Beijing, Shanghai, Singapore, and Greater Tokyo are the largest life sciences markets in the Asia Pacific region,” CBRE APAC Head of Life Sciences Senior Director for Advisory & Transaction Services Paul Peeters said.
He added that while China leads the world in in-progress lab construction, India is emerging as an attractive life-sciences manufacturing hub.
Meanwhile, CBRE also found different markets and countries moving to the forefront of various categories of the life sciences industry.
Existing Lab Space
The largest global markets by square footage of lab and research and development (R&D) space are Boston with 56 million sq ft, followed by San Francisco with 43.6 million sq ft and San Diego with 27.3 million sq ft.
“For the largest markets outside of the US are Beijing at nearly 22 million sq ft and Shanghai at nearly 13 million sq ft,” CBRE said.
Lab Construction
However, Chinese markets have by far the most lab and R&D space under construction as of fourth quarter last year (4Q24) with 7.4 million sq ft in Beijing and 6.4 million sq ft in Shanghai. Boston is far behind with 3.9 million sq ft. The London area, on the other hand, has emerged as the most active European market with 2.7 million sq ft under construction (in a tie with San Francisco).
Venture Capital
The US claimed 67% of global VC funding for life sciences in 4Q24, up from 59% in 2023. Next are China at 8%, the UK at 7% and Switzerland at 3%.
Shanghai is the world’s sixth-most-active centre for global life sciences VC investment and Beijing, at tenth, together accounted for more than US$1.7 billion in 2024.
