London Life Sciences Real Estate Demand Report 2021
Lab spaceA detailed analysis of the rising demand for life sciences real estate in London, highlighting pressures on supply, SME needs, and recommendations for future infrastructure planning.
Overview
London’s life sciences sector is expanding rapidly, driven by world class research, strong talent, fast growing SMEs and increasing global investment. This report brings together insights from more than 100 companies to map the city’s current and future real estate requirements. Demand for wet laboratory space, small scale manufacturing environments and flexible R&D facilities now far exceeds supply, with innovation centres operating at full capacity and lengthy waiting lists.
Companies identify access to talent as a major reason to grow activity in London, but lack of suitable space is a significant barrier, particularly for SMEs and early stage ventures. The findings show a strong need for purpose built laboratories, clean rooms, shared facilities, and central locations that support collaboration and cluster growth. The report sets out clear recommendations to help industry, developers and policymakers plan effectively so that London can continue to thrive as a leading global centre for life sciences innovation.
Key takeaways
- Demand for specialist space is rising rapidlyLondon’s need for wet laboratories, clean rooms and flexible R&D environments has grown significantly. Innovation centres are full, waiting lists are long and demand for space now far exceeds supply, particularly for SMEs seeking small scale suites or purpose built facilities.
- Talent drives location decisionsAccess to skilled people remains the strongest reason companies choose London for R&D. Large corporates and scaling ventures prioritise recruitment potential and proximity to research institutions over rental costs, reinforcing London’s position as a top global life sciences hub.
- SMEs face the biggest barriers to growthEarly stage companies struggle to secure affordable, fit for purpose laboratory space. Limited availability slows scale up and forces businesses to consider remote locations. The sector highlights the need for shared facilities, flexible models and greater coordinated support across London.
