The life sciences sector in the EMEA region (Europe, Middle East, and Africa) is showing real estate growth despite wider economic uncertainty. Key drivers include innovations in artificial intelligence (AI), a growing emphasis on sustainability (ESG), and rebounding venture capital (VC) funding. Real estate investors are addressing the historical shortage of modern lab space by delivering new, specialized facilities, according to the latest JLL report, “EMEA Life Sciences Industry Perspective and Cluster Report 2025”.
The report analyses 43 locations, establishing three separate rankings benchmarking the clusters based on their strength in the subsectors: biopharma research and development (R&D), digital health and tech R&D, and pharmaceutical manufacturing. On November 13, a meeting with life sciences sector representatives took place at JLL's Warsaw office headquarters, where the most important data from the report was presented. The supporting partners of the event were the Polish Investment and Trade Agency and the Polish Association of Innovative Medical Biotechnology Companies BioInMed.
Key trends shaping the market
After a slowdown in recent years, VC funding in the European life sciences sector is gaining pace. The first quarter of 2025 was a record-breaker, with companies raising €3.8 billion, the highest result since Q4 2021. As of early November 2025, total VC volume targeting Europe’s life sciences companies has broken the €10 billion mark and could be the second highest year on record. However, the funding is now more concentrated, targeting fewer, more established companies with robust scientific foundations.
Artificial intelligence is having a dual impact on the sector: it revolutionizes drug discovery processes while also changing real estate requirements. According to the JLL Future of Work Survey, 84% of life sciences decision-makers believe that by 2030 their workplace space will be equipped with the latest AI-driven technologies, yet only 51% admit that their corporate real estate function has a strategy in place for embedding AI. The importance of ESG targets is also growing. The “Biotech, health care and pharma” sector recorded the largest year-on-year growth (222%) in the number of companies setting science-based targets, which directly translates into demand for greener and more energy-efficient lab buildings.
– "We are witnessing a paradigm shift in the life sciences market. It's no longer just about the scale of research, but how it's conducted. AI is accelerating scientific breakthroughs, and capital markets are demanding more flexible, asset-light business models. This directly translates into real estate demand—not for just any space, but for flexible, tech-enabled facilities located where talent and innovation converge. Access to these two resources is the key driver for location decisions today.” – comments Dr Alexander Nuyken, EMEA Head of Life Sciences at JLL.
Cluster rankings – leaders and emerging markets
The Biopharma R&D ranking is dominated by UK clusters such as London, Cambridge, and Oxford, as well as Paris and Berlin-Potsdam. In the pharmaceutical manufacturing ranking, Dublin leads, followed by Medicon Valley (Denmark/Sweden), Barcelona, Basel, and Milan.
Poland was classified in the third group (Tier 3) in the Biopharma R&D ranking and in the second group (Tier 2) in the pharmaceutical manufacturing ranking, indicating its growing potential and status as an emerging cluster on the European map.
– “Our research clearly shows how the real estate market is responding to the lab space shortage in much of continental Europe. We are seeing a substantial supply of new, private investor-led laboratory projects. If all schemes currently in the planning stage are delivered, current stock levels could potentially double within the next 5-6 years. This new supply is crucial as it meets modern requirements for sustainability, flexibility, and technological integration. As a result, the market is becoming more stratified, with top-tier assets in prime locations absorbing demand first, which is reflected in significant rental premiums over standard office space.” – adds George Beaton, EMEA Life Sciences Research Lead at JLL.
"JLL Poland is actively engaging with the life sciences sector, as we recognise its significant, forward-looking potential. We are committed to fostering dialogue and creating platforms for discussion, exemplified by our event with the Polish Investment and Trade Agency (PAIH) and the BioInMed industry association. We remain open to continuing these vital conversations and can leverage the extensive knowledge of our JLL EMEA Life Sciences experts, who bring years of in-depth analysis from across the region to support the growth of this sector in Poland."
– "Laboratory infrastructure is one of the key pillars of a thriving biotechnology ecosystem, which we strive to create, but it is not enough on its own. It must go hand in hand with strong public funding, private capital and venture investments. Our task as an industry representative is to integrate the potential created by outstanding Polish research teams and companies with the business community, investors and public authorities into a cohesive ecosystem. Despite the challenges ahead, we are determined to reach new milestones and consolidate Poland's position on the global biotechnology map." – adds Marta Winiarska, President of the Management Board and Managing Director of BioInMed.
– "Every year, nearly 68,000 graduates with majors relevant to the life sciences sector enter the Polish labour market, and our research centres and technology clusters create ideal conditions for conducting groundbreaking projects. Combined with Poland's already widely recognised economic appeal as a location, and with the right strategic support, we have the opportunity to cement our position as the right partner for global companies in the pharmaceutical, biotechnology and medical industries." – says Joanna Wilińska, Expert at the Investment Support Department at PAIH.
The report highlights that the historical model, where lab real estate was driven by the public sector or by owner-occupiers, is giving way to modern, commercial facilities available for lease. This creates new opportunities for both tenants, who gain flexibility, and for investors seeking attractive opportunities in this rapidly growing market.