What are the investment prospects in life sciences and real estate?

Life science disciplines

The scientific discipline known as “life science” encompasses a variety of fields and methods focused on the detailed study of living organisms, their anatomy, function and interaction with the environment. Within human endeavor, it includes scientific endeavors and technologies that aim to improve the quality of life. The major undisputed areas of life science encompasses fields such as biology, medical sciences, health care, pharmaceuticals and the food industry.

Linking life science to the real estate market

It should be emphasized that life science has a direct connection with the real estate market. Scientific and medical organizations require specialized spaces - production factories, laboratories, office space and warehouses, which increases the investment attractiveness of such facilities.

Researchers from PwC have highlighted life science real estate as one of the most promising in their work, ranked third in terms of investment attractiveness. The COVID-19 pandemic has sharpened interest in companies in this field, which has helped them to progress aggressively.

Reasons for high investment potential

There are a number of reasons for the high investment potential of the life science sector:

• Rapid growth:This field is still in a phase of rapid growth. It has only started to be talked about more since the mid-2000s, when the concept of “robotics” was no longer perceived as science fiction.
• Increased investment:According to industry reports, investment in life science companies increased 4.6 times between 2008 and 2019, from $3.7 billion to $17.4 billion.
• Well-known companies:Well-known brands such as Pfizer and AstraZeneca have become well known, adding credibility to the financial success of this field.
• Rising prices:During the pandemic, the cost of goods in the life science segment in the U.S. nearly tripled.

Growing number of professionals

Research data shows that not only is the amount of investment growing, but also the number of professionals working in the field. Since 2000, the number of people employed in life sciences has increased by 87.9%, and this trend is continuing.

Stability in the face of economic difficulties

Another important aspect is the stability of the sector, even in the face of economic difficulties. According to research by Newmark Knight Frank, in 2020, investments in life science real estate reached a record level, exceeding $10 billion. The sustained growth of this sector in a difficult economic environment makes it not only attractive, but also relatively safe for investment in both the short and medium term.

Laws of a growing market

The growing market also has its own patterns. The pandemic demonstrated how important the life science sector is, and the pharmaceutical industry benefited the most in 2020. It's no surprise that interest in medical innovation has led to a doubling of the number of labs in the U.S. compared to 2019.

Population aging and the relevance of technology

However, the focus should not be on pharmaceuticals alone. Most developing countries are experiencing an ageing population. By 2030, more than 21% of US citizens are projected to be over 65 years of age. Topical technologies aimed at prolonging life and maintaining health are becoming increasingly relevant in today's realities.

Relevance of investing in foreignreal estate

The interest among investors in investing in overseas apartments raises many questions, especially relevant in 2021. Experts in the field provide advice on various aspects of investment, including immigration and the realization of overseas real estate. One of the most discussed areas is the sectorlife sciencewhich is considered a relatively safe investment.

Despite the global challenges of losing tenants and declining rental rates, investment in thelife scienceremain more stable compared to other asset classes such as equities and digital currencies.

Conclusion

To conclude my research on the life science sector and its relation to real estate, I would like to emphasize that this area is becoming more and more relevant and important. As I have shown, life science encompasses many important aspects that relate not only to health and medicine, but also to quality of life in general. The COVID-19 pandemic has only accelerated the development of this sector, demonstrating its key importance for society and the economy.

Life science real estate investments

Investing in real estate life science is not only a civic initiative, but also a strategic necessity to ensure sustainable growth. The number of professionals interested in this field is growing every year, and research indicates that the market will continue to flourish. This creates unique opportunities for investors looking to invest in promising and stable assets.

How to invest effectively

In order to invest effectively in life science real estate, you need to understand the specifics of this market. As I described, it is important to consider not only the needs of tenants, but also trends that will be relevant in the future. For example, the aging population in developed countries will create additional demand for medical innovations and specialized space. Investors need to be prepared for this so that they do not miss out on opportunities.

Conclusions

Thus, I am confident that living towards life science is not just a temporary fashion trend, but a viable avenue for future real estate investments. Taking into account all the above factors, it is safe to say that life and science are of great importance in shaping our future, and investing in this sector can bring solid dividends for both private investors and large companies.