The science market has evolved significantly over the past five years. Advances across a broad range of scientific disciplines, combined with the rapid adoption of AI, are reshaping both research and commercialisation. This transformation is setting the stage for an exciting new chapter of growth.
After years of speculation about the growth potential of UK life sciences, the sector has now settled into a more mature phase.
The UK's most established life sciences sectors are in robust health. Cell and gene therapy, vaccine technology and precision medicine continue to attract investment, with VC funding into London-based life sciences companies already exceeding 2025 total by mid-June.
Science expanding way beyond traditional focus areas
But some of the most exciting activity is taking place beyond these traditional areas. We’re seeing demand from companies in quantum computing, advanced materials, climate technology, clean energy, autonomous systems, robotics, defence and space.
The fierce competition for offices from AI companies, particularly in London, has dominated headlines and prompted some questions about the future demand for scientific real estate. However, this overlooks a much broader trend. Behind headlines concerning OpenAI, Anthropic and Databricks, sits an increasingly large ecosystem of science-led businesses using AI to accelerate research, shorten development timelines and unlock new commercial opportunities.
Consequently, demand is for a wide variety of specialist spaces, including wet and dry laboratories, cleanrooms, pilot plants, advanced manufacturing facilities and high-performance computing infrastructure. The intersection between AI and science is creating entirely new real estate requirements, many of which extend far beyond the standard laboratory model, not replacing existing ones.
AI functions being embedded in scientific research and development
Around a third of the UK active science occupier demand we’re tracking is companies with AI embedded in their research or product development. AI is accelerating innovation and also improving companies' attractiveness to investors. Recent funding rounds secured by Olix Computing and Oxford Quantum Circuits, for example, demonstrate investor appetite increasingly favouring organisations combining deep scientific expertise with advanced computational capabilities. Concurrently, investment from giants including Google, Nvidia, Amazon and Microsoft is likely to drive further demand for physical research and development space, while also encouraging deeper collaboration with established pharmaceutical and industrial businesses.
We’re already seeing the impact of AI-led growth on London's occupier market. Given the world-leading strengths of both Oxford and Cambridge in quantum technologies, engineering, biotechnology and AI, demand here will also undoubtedly strengthen.
New adaptable forms of real estate
What occupiers want is also changing too. Just as partnerships between pharmaceutical and AI companies are driving demand for more sophisticated facilities, new forms of collaboration across science and technology will create increasingly complex requirements. The traditional distinction between office and laboratory is fading. Instead, occupiers increasingly require buildings to accommodate multiple functions - from research and development to prototyping, advanced manufacturing, data processing and collaboration. The most successful buildings will be those that are capable of adapting to these changing needs.
Science isn’t immune to market cycles, however it’s now an established and increasingly important component of the property market and, importantly, the drivers of its growth are broadening and diversifying. We’re on the cusp of a new era of scientific innovation, one in which the UK’s exceptionally well placed to succeed. Ensuring we have the right real estate to support that ambition is critical.
