Life Science Real Estate: Germany Lags Far Behind the USA
In Germany, there is a growing interest in research in the fields of medicine and biology. However, a current market report now shows that Germany lags far behind other countries when it comes to suitable real estate for these companies. While the USA and the UK dominate the market for so-called life science real estate, the supply in the Federal Republic is still very small.
The figures illustrate the huge difference between the markets. In Germany, only about 85,000 square meters of space were recently transacted for life science companies. In comparison, the figure in the USA is around 65 million square meters. This massive contrast shows that Germany is still at the beginning of a development in the provision of research and laboratory space that is already established internationally.
Life science real estate consists of specialized buildings that contain state-of-the-art laboratories and research centers. They are of great importance to the economy, as key innovations such as new drugs or medical technologies are developed there. If there is not enough suitable space for these companies, important scientific projects could be missing in Germany, or companies might migrate abroad.
Not only the USA, but also the UK is far ahead of Germany in this area. In cities such as London, Oxford, and Cambridge, there are already large, specialized centers for science. In Germany, the market has so far concentrated primarily on metropolises such as Munich, Berlin, or Hamburg. Although demand there is high, the supply of modern and flexible laboratory space is often insufficient to keep up with international competition.
Experts agree that the market in Germany must grow in the coming years. To ensure that Germany remains internationally competitive as a business location, investors and developers must increase their investment in this specialized real estate sector. This is the only way to ensure that German research will continue to find the necessary space for its work in the future and that technological breakthroughs remain possible in this country.