With a strong growth potential and a distinct social angle, the life sciences sector is developing at a fast pace, increasing investors’ interest in securing a spot in this forward-looking niche. But access is selective, and real estate industry experience alone is not enough to be successful. What does it take? UBS Asset Management’s Real Estate & Private Markets (REPM) life sciences experts Jonathan Hollick, Olivia Drew and Zachary Gauge discuss the sector’s dynamics and give an outlook into what the next few years might look like.

What are the main macro-drivers behind the UK life sciences sector’s growth? 

Gauge: The COVID-19 pandemic undoubtedly focused attention on the life sciences sector in the United Kingdom. But even prior to the pandemic, the sector’s importance to the UK economy had been growing, as the presence of leading global research institutions placed the market in a strong place to benefit from the wider macro-drivers behind the healthcare sectors. 

By 2050, we’ll have a larger patient base for chronic diseases. Growth in disposable incomes in emerging markets is also contributing to a larger global healthcare market, as more of the population has access to health insurance policies. Underpinning these demographic trends is a sharp increase in R&D [research and development] spending on new treatments, with global spending on R&D forecast to increase.

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