Key takeaways
- In 2026, Germany is establishing itself as one of Europe's most dynamic life-sciences locations, carried by excellent research clusters, growing venture capital and demand that far exceeds supply.
- European venture capital volume in healthcare and life sciences reached around €13.22 billion in 2025, up 2.8% year on year, with Berlin accounting for the majority of Germany's life-sciences venture capital.
- The broader European deep-tech and life-sciences sector comprises over 7,300 companies with more than 167,000 employees and a valuation of around USD 398 billion.
- As the European Life Sciences Sector Guide 2026 by CBRE notes, the sector remains on a growth course, and Germany is establishing itself as one of the most dynamic markets.
Life sciences real estate is one of the most exciting niches in the German commercial real estate market – and at the same time one of the hardest to access. Highly specialised laboratory and research space combines the stability of healthcare and science demand with structurally scarce supply and considerable rent premiums. In 2026, Germany is establishing itself as one of Europe's most dynamic life-sciences locations, carried by excellent research clusters, growing venture capital and demand that far exceeds supply.
A Growing Ecosystem
The sector's momentum draws on a flourishing innovation ecosystem. European venture capital volume in healthcare and life sciences reached around €13.22 billion in 2025, up 2.8% year on year, with Berlin accounting for the majority of Germany's life-sciences venture capital. The broader European deep-tech and life-sciences sector comprises over 7,300 companies with more than 167,000 employees and a valuation of around USD 398 billion. As the European Life Sciences Sector Guide 2026 by CBRE notes, the sector remains on a growth course, and Germany is establishing itself as one of the most dynamic markets.
This assessment is confirmed by independent analyses of the European life-sciences sector's growth momentum. The decisive point for real estate investors is the close coupling between scientific excellence, venture capital and space demand: where research and capital come together, demand arises for specialised laboratory and office space.
The German Clusters: Munich and Berlin
Germany has several strong life-sciences clusters, with Munich at the top. The Bavarian capital is Germany's largest biotech location with around 450 biotech and pharma companies, with innovation centres in Martinsried in the south-west and Garching in the north. The cluster is anchored by first-class research institutions – TU Munich, LMU, Helmholtz and Max Planck institutes – which deliver a continuous stream of spin-offs and skilled professionals. One example of the connection between research and space is BioLabs|TUM, a refurbished 1,800 sq m facility offering fully equipped labs and offices for 15 to 20 start-ups.
Berlin forms the second large cluster, with focal points in Adlershof, the south-west and Potsdam, plus the Berlin Institute of Health at Charité. Inner-city lab developments are emerging. As the overview of biotechnology clusters in Germany by GTAI shows, the German life-sciences landscape is distributed across several regional focal points, allowing investors a differentiated location choice. Proximity to universities, clinics and research institutes is the decisive location factor.
Why Lab Space Commands Rent Premiums
The economic core of the asset class lies in the specialisation of the space. Laboratory and R&D space commands considerable rent premiums over standard offices because it must meet high construction and operating requirements: special ventilation and safety systems, supply lines for gases and chemicals, vibration damping, higher floor loads and strict regulatory requirements. This complexity makes lab space expensive to build and operate – and at the same time creates a structural scarcity, since not every office space can be converted into a lab.
This scarcity is the central value driver. While demand for specialised lab and R&D space grows continuously, central supply remains structurally limited. International experience shows the sector is demanding: as CNBC reports on the recovery of the lab real estate market, the sector has recovered after a phase of overbuilding and correction in the US – a warning that life sciences too carries cyclical risks and that oversupply can quickly weigh on rents.
Outlook: Specialisation as Opportunity and Hurdle
For German investors, life sciences is an asset class with a high degree of specialisation. The opportunities lie in structural demand, rent premiums and anchoring in a growing innovation ecosystem. The hurdles lie in the high construction requirements, the need for specialised management, and the necessity of identifying the right cluster locations. Unlike standard offices or residential property, deep expertise about tenants' needs – biotech start-ups, pharma companies, research institutes – is indispensable here.
What this means for principals: life sciences real estate offers one of the most attractive structural growth stories in the German market but demands a high degree of specialisation. The value lies in scarcity: specialised lab space cannot be multiplied at will, therefore commands rent premiums, and is especially sought after in the top clusters – above all Munich and Berlin. Decisive are location choice in immediate proximity to universities, clinics and research institutions, and specialised management that masters the technical and regulatory requirements. Investors without this competence should approach the sector via specialised funds or joint ventures with experienced operators. And they should heed the US experience: in life sciences too, overbuilding can lead to corrections – discipline in location and quantity management is essential.
AI-generated, editor-reviewed. Briefings are drafted by neospaces research models from current broker market data and reviewed by a broker before publication.