India is becoming a leading destination for various global players in the life sciences real-estate due to huge domestic demand and global competitiveness.
These companies are entering a period of collaborative research and development, demanding greater flexibility and creative space and this needs an effective real- estate strategy.
With an investment opportunity of over 800Mn, the Indian Life Sciences real estate is a USD 12Bn industry. The Indian pharma sector witnessed approx. 39 PE investment deals worth about USD 217Mn between July and Sept 2018 alone.
The investments by the RE providers offer facilities ranging from a bare shell to an integrated campus with dedicated plug and play. The offers that are predicted are of an enhanced warm shell, based on the standardization of knowledge achieved over years of experience that can be customized for tenant requirements.
With the life sciences innovation rising, the demand for the space to innovate is rapidly increasing. The ‘buy and leaseback’ option is emerging as a preferred option for life sciences companies with the increasing interest from global investors.. The trend of the ‘asset-light’ model and an increasing demand for integrated life sciences buildings the leasing of spaces is expected to increase.
Most infrastructures today such as parks, incubators, built to suit facilities, pilot plants, etc. have been funded primarily by governments, followed by independent industry players. With an increased capital flow, the Indian markets are expected to evolve with the growth model of the industry
A lesser-known asset class, Life Sciences real estate is the next big opportunity for investors and real-estate players with 15 core clusters and upcoming clusters in Punjab, Noida- Delhi NCR, Gujarat, Madhya Pradesh and Maharashtra.
Some of the major clusters of life sciences are in:
- Genome Valley, Hyderabad, Telangana
- Bommasandra, Electronic City, Bengaluru, Karnataka
- Patancheru, Hyderabad, Telangana
- Taramani, Chennai, Tamilnadu