Life Sciences on the Chinese Mainland – Vital signs: Diagnosing trends in the life sciences real estate market on the Chinese mainland
Detail information
Opening to Foreign Investment
In 2024, China eased restrictions on foreign investments in stem cell research, gene therapy, and genetic diagnostics within Free Trade Zones (FTZs) like Beijing, Shanghai, Guangdong, and Hainan.
Regulatory Incentives
The State Council's Circular No. 53 introduced measures such as regulatory data protection and marketing exclusivity for select pharmaceutical products, including orphan and paediatric drugs.
Wholly Foreign-Owned Hospitals
China now permits the establishment of wholly foreign-owned hospitals in cities like Beijing, Shanghai, and Shenzhen, enhancing healthcare services and encouraging foreign investment.
HONG KONG SAR - Media OutReach Newswire - 1 August 2025 -Cushman & Wakefield, a leading global real estate services firm, today released itsreport. It is based on in-depth interview surveys we conducted on professionals active in the life sciences sector on the Chinese mainland. The life sciences industry on the Chinese mainland is undergoing a transformative phase, driven by progressive policies, groundbreaking innovations, the emergence of influential life sciences companies, and strategic regional development. This report delves into the latest trends shaping the sector.Reforms enacted in 2024-2025 have significantly accelerated sector development. Nationally, China relaxed restrictions on foreign investment in gene and cell therapy and allowed the establishment of wholly foreign-owned hospitals in key cities. Regulatory incentives – such as data protection and marketing exclusivity – have improved market access for innovative drugs. Locally, cities like Beijing, Shanghai, Shenzhen, Guangzhou, and Suzhou are rolling out targeted subsidies, fast-track approvals, and ecosystem-building programmes that directly benefit biotech development.Chinese life sciences companies are moving beyond generic drug manufacturing toward innovative therapies. Firms like Akeso, BeiGene, Gracell, and Legend Biotech are now global players, leading in CAR-T, bispecific antibodies, and AI-assisted R&D. These companies are not only commercialising cutting-edge treatments but also attracting international investment and licensing agreements, reinforcing the Chinese mainland's global relevance in life sciences.Innovation hubs such as Suzhou BioBAY, Zhangjiang Hi-Tech Park (Shanghai), and the Bioisland Innovation Centre (Guangdong) are central to regional clustering. These hubs offer end-to-end support, including shared labs, venture capital access, GMP-compliant facilities, and proximity to academic and clinical networks. The rise of second-tier innovation cities like Chengdu and Ningbo further expands growth corridors.Real estate developers and landlords are adapting to sector-specific requirements through asset-light models, flexible leasing, and high-specification lab and production space. Tier-1 cities face saturation, but central and western regions exhibit healthy demand. Developers are incorporating advanced sustainability and compliance features to meet growing regulatory and ESG expectations, particularly in GMP and cleanroom environments.Digitalisation, environmental policies, and differentiated tenant strategies are shaping performance. Operators now focus on integrated ecosystems with platforms that link tenants to R&D services, policy benefits, and technology partners.Life sciences occupiers are navigating regulatory reform, rising compliance demands, and intensified market competition. Many are localising production and R&D, leveraging regional subsidies, and investing in AI-powered innovation platforms. Occupiers seek flexibility, proximity to talent and infrastructure, and co-located R&D and manufacturing to support accelerated innovation and operational agility.In real estate, demand is strongest for GMP-certified labs, modular production facilities, and shared innovation platforms. Occupiers emphasise location advantages, sustainability certifications (e.g., LEED, WELL), and integration into clusters that enable faster time-to-market., said, "Life sciences business parks on the Chinese mainland demonstrated clear regional differentiation, highlighting opportunities for strategic positioning. While Tier-1 cities saw more moderate performance due to broader macroeconomic factors and abundant supply, core cities in central and western regions recorded healthy occupancy rates, underpinned by strong industrial clustering and increasingly sophisticated ecosystems – contributing to steady growth in asset value.""Several interviewed life sciences companies on the Chinese mainland achieved revenue growth supported by innovative products and favourable policy tailwinds. While overall growth remained modest for many, a select group reported strong performance, highlighting opportunities for differentiation".said," Looking ahead to 2025 and beyond, growth opportunities lie in AI-driven drug discovery, personalised medicine, advanced therapeutics (CGT, RNA), and green-certified facilities. Government policies continue to support innovation through fast-track approvals, rare disease funding, and subsidies aligned with dual-carbon and ESG goals"."Life sciences real estate is shifting from generic parks to specialised, digitally enabled campuses with high compliance and flexibility. Investment strategies increasingly emphasise long-term partnerships, collaborative operating models, and digital infrastructure. Both landlords and occupiers express cautious optimism, with strategic differentiation and regional targeting seen as keys to unlocking future value".Please click here to download the full report.Hashtag: #Cushman&Wakefield
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About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2024, the firm reported revenue of $9.4 billion across its core services of Valuation, Consulting, Project & Development Services, Capital Markets, Project & Occupier Services, Industrial & Logistics, Retail, and others. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.hk or follow us on LinkedIn ( https://www.linkedin.com/company/cushman-&-wakefield-greater-china).
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'If you want to see where the biggest cost reductions for reliable electricity are happening, it's in clean energy [like] wind, solar, in demand-side management, smart meters, and so forth ... There the cost reductions are real. They're clear. They're visible. They're already happening.' - SOUTH CHINA MORNING POST
