Life science property investors in China expect steady growth as R&D spending spurs demand for lab space
- Investors expect the sector to grow steadily in 2023 despite a plunge in biotech financing last year that has weakened leasing activity
- Solid spending on research and development is likely to drive demand for better laboratory facilities in industry parks
Life science property investors in China expect the sector to grow steadily in 2023 despite a plunge in biotech financing last year that has weakened leasing activity.
Their confidence is underlined by the resilient rental performance of life science real estate and companies’ solid spending on research and development (R&D), which is likely to drive demand for better laboratory facilities in industry parks.
“We believe Asia, and China specifically, has a scalable life science real estate market,” said Hans Kang, CEO of healthcare infrastructure platform at CBC Group. “Overall, we see life science companies in Asia continuing to display robust demand for lab space to support their R&D activity.”
He said strong demographics, solid R&D spending and supportive industry incentive policies will drive the long-term growth of the sector.
CBC Group’s healthcare infrastructure platform has invested US$450 million so far to provide lab space and manufacturing sites covering 520,000 square metres to biotech players in China.
