Real estate continues to fuel growth of Indian life sciences; provide platform for global ascent in 2025

India’s life sciences industry continues to demonstrate its stature as a global powerhouse, often referred to as the “pharmacy of the world.” Renowned for its extensive production of generic drugs and vaccines, the sector has played a pivotal role in addressing global healthcare demands. As of 2024, India has produced nearly half of the eight billion vaccine doses distributed worldwide, cementing its reputation as a reliable healthcare contributor. However, the life sciences ecosystem is now moving beyond generics, pivoting towards cutting-edge advancements like personalised medicine, gene therapy, and mRNA-based treatments. This transition has significant implications for the life sciences real estate market in India, presenting a dynamic blend of opportunities and challenges for 2025 and beyond.  

Key drivers of growth in 2024  

This year has been a significant milestone in India’s ‘techade’, especially for the life sciences firms that are rapidly integrating technologies in the field of precision medicine and digital health into their operations. Initiatives like the BioE3 Policy and the National Digital Health Mission have accelerated the adoption of tech-backed diagnostics and personalised healthcare. This tech-driven evolution has been mirrored in the demand for state-of-the-art research and development (R&D) facilities and production hubs.  

At the same time, India’s growing focus on tapping the $36 billion global biosimilars market highlights the need for real estate infrastructure that can support advanced manufacturing capabilities. With global spending on therapeutics in areas such as immunology and oncology expected to rise by 38 per cent through 2028, India’s real estate developers must align their offerings to support the sector’s ambitions.  

Sustainability has emerged as a cornerstone of the growth narrative. Life sciences firms in India are increasingly investing in green-certified infrastructure and circular economy principles. Real estate developers must cater to this sustainability mandate by incorporating energy-efficient designs, water conservation systems, and green certifications into their projects. On the other hand, focus on supply chain sustainability is driving demand for integrated logistics and warehousing solutions. With over 70 per cent of healthcare emissions stemming from supply chains, companies are enhancing transparency and engaging suppliers in eco-friendly practices. As these trends unfold, life sciences real estate will need to include carbon-neutral and resource-efficient models across its offerings.  

Opportunities to look out in 2025 

India’s recent regulatory reforms have streamlined approval processes for biologics and biosimilars, fostering a conducive environment for innovation. The government has rolled out several programs and initiatives to support the growth of the life sciences sector with initiatives like ‘Make in India,’ ‘Pharma Vision’ and ‘National Biotechnology Development Strategy’. These policies have created an environment for the industry to thrive, further driven by programs like the Vigyan Dhara scheme and the Biotechnology for Economy, Environment, and Employment (BioE3) Policy aligning with the country’s broader vision to become a developed nation by 2047. 

The life sciences industry is increasingly leveraging such developments to foster collaborations with technology firms, academic institutions, and global healthcare leaders. A recent partnership involving the Indian Institute of Science (IISc) have emphasised the need for cutting-edge laboratory infrastructure to drive breakthroughs in neurodegenerative and cardiovascular research. These trends indicate robust demand for real estate assets tailored to collaborative ecosystems.  

The sector’s evolution toward innovation-led growth necessitates a transformation in real estate infrastructure. R&D hubs, biotech parks, and pharma clusters must incorporate flexibility, scalability, and smart technologies to support rapidly changing industry needs. These spaces should cater to advanced therapeutic development, including cell and gene therapy, which require stringent environmental controls and modular designs. With a potential demand for ~96 million square feet of life sciences research and development real estate until 2030, India is poised for private equity institutional investments, estimated at a staggering USD 18 billion between 2021 and 2030 (1). The country’s ambition to capture a larger share of the biosimilars market and increase its contribution to global advanced therapeutics will drive demand for specialised facilities, including cold chain logistics and specialised storage. Real estate developers who can provide customised solutions—like plug-and-play lab spaces and hybrid workspaces for researchers—will find themselves well-positioned to benefit from this shift.

As India’s life sciences sector evolves, its real estate market must adapt in tandem. The focus on innovation-led growth, sustainability, and regulatory modernisation will redefine the landscape, creating demand for advanced and specialised infrastructure. By aligning with these trends, real estate developers can play a crucial role in supporting the sector’s transition from a leader in generics to a co-innovator in global healthcare. The year 2025 holds immense promise, with India poised to strengthen its position as a hub for pioneering advancements in life sciences. For the real estate sector, this represents an opportunity to create transformative spaces that enable innovation and collaboration, laying the foundation for a thriving bioeconomy.

References:

1.  Savills India | Unlocking Opportunities: Life Sciences and Real Estate in India