Savills

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Sector Special: Dutch Life Sciences 2024

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Read the latest developments in the Dutch life sciences real estate market below

The Dutch life sciences sector has shown remarkable growth over the years, largely due collaboration between government, businesses and knowledge institutions. Due to its high talent and capital attractiveness, the Netherlands and most notably, The Randstad, lands at the fourth spot in Savills European Life Science Ranking (ELSR). There are, however, potential challenges ahead, notably in retaining highly skilled talent, at a time when there are complex policy discussions about the sustainability of economic development which heavily relies upon immigration.

Key findings:

  1. Life sciences sector growth - The Dutch life sciences sector has grown over the years, due to its attractive ecosystem. The number of life sciences companies has grown by 29.2%, with both its Gross Value Added and real estate footprint (LFA) increasing 13.9% and 27.2% respectively since 2015.
  2. Tight supply and demand ratios - The growth of real estate suitable for life sciences has not kept up with demand, resulting in a 60.8% increase of average rents in the period 2015 – 2023. Data for 2018 – 2023 suggests that the rent for properties suitable for life sciences are on average 3.2% higher for buildings located on a Science Park compared to similar buildings located outside of a Science Park, in the same municipality.
  3. Investment market - The growth in the life sciences sector has been matched by the growth of life sciences real estate investment. Investment into sciences & life sciences real estate increased from €49.2 million in 2015 to €212.2 million in 2022 (338.8%). However, in 2023, sciences & life sciences transaction volumes fell 77.2% YoY to €48.6 million. The decline corresponds with the drop in overall Dutch real estate investment volumes in 2023. Volumes fell 57.3% YoY across all sectors, constrained by the weakening economy, and higher interest rates.