Colliers and European Science Park Group AG (ESPG) publish an update of their market study
Colliers and the European Science Park Group AG (ESPG) published the study “The Life Science Real Estate Market in a New Market Phase. Stable, but more selective.” an update of their market analysis, which was first published in 2023. The focus is on the key developments in the German life science real estate market and the changes that have shaped the segment over the past three years. The study is based on evaluations of the Colliers research database, ESPG’s industry-specific know-how and in-depth analyses of scientific sources. The results are supplemented by expert interviews.
Investors focus on quality and established clusters
In the first half of 2026, life science real estate worth around 112 million euros was traded. This means that the transaction volume has already almost reached the level of 2025 as a whole, which represents a noticeable market revival compared to the previous year. Nevertheless, the transaction volume has remained at a significantly lower level overall since the end of the pandemic-related boom in 2022.
Investors are focusing on high-quality core products in established life science clusters. Munich, Berlin and the Rhine-Neckar and Rhine-Main regions play a key role in international competition. Its particular strength is based on clearly defined microclusters in which research institutions, companies and specialised infrastructure are closely interlinked. Francesca Boucard, Head of Market Intelligence & Foresight Colliers Germany, says: “High technical requirements, a lack of standards and limited market transparency make it difficult for many investors to access the market. At the same time, this opens up attractive opportunities for players who understand the special features of this type of use and position themselves in the market in a targeted manner.”
Artificial intelligence is changing the requirements for life science real estate
Technological developments are increasingly shaping the requirements for life science real estate. In particular, the significant increase in the use of artificial intelligence since the first study is changing research, work and usage processes and increasing the need for flexible laboratory, office and research space. In addition, demand is becoming more differentiated. Specialized service providers are increasingly adopting standardized process steps, which means that different laboratory and space concepts are becoming more important. However, laboratory space remains indispensable, as research will continue to rely on specialized physical infrastructure in the future.
Resilient type of use with an attractive risk-return structure
The life science real estate market offers investors attractive opportunities despite high barriers to market entry. The segment’s pronounced specialization, excess demand for laboratory space and limited supply create promising return prospects. At the same time, long-term leases, a high level of location retention among users and low vacancy risks ensure stable cash flows and an overall resilient risk profile.
A major reason for this is the lack of substitutability of laboratory space. Research and production processes are usually dependent on physical infrastructure and can only be shifted to flexible working models such as home office in exceptional cases. Together with the limited supply of space and stable demand, this leads to an overall positive risk assessment from a financing point of view.
Ralf Nöcker, CEO of ESPG AG, summarises: “Despite their independence, life science properties are still too often viewed according to the standards of the office market. In doing so, they position themselves as an independent type of use within the real estate market, offering attractive investment opportunities for both specialized investors and investors looking for new growth and diversification opportunities.”
The full report is available for download here: www.colliers.de/life-science-report-2026
