The UK life sciences property market is beginning to rebalance as new laboratory space reaches completion, while improving global investment conditions provide early signs of renewed confidence in the sector, according to Cushman & Wakefield.

The property consultancy's September 2026 Life Sciences Update said 825,000 sq ft of new space was delivered across the UK's Golden Triangle during the first half of the year, as projects that began construction around two years ago reached completion.

The additional supply comes as life sciences real estate markets globally continue to work through elevated vacancy following a period of rapid development and changing occupier demand. Global lab and current Good Manufacturing Practice (cGMP) rents fell 0.5% year-on-year, while vacancy increased to 24.2% as recently completed developments entered the market.

However, Cushman & Wakefield said the rate at which vacancy is increasing has started to slow. Development pipelines have also contracted significantly across most major markets, raising the prospect that vacancy could be approaching its peak.

In the UK, rental performance remains fragmented. Fitted laboratory space in Oxford is now achieving rents above previous benchmarks, according to the report, contributing to a widening gap between quoted and achieved rents across the Golden Triangle of Oxford, Cambridge and London.

The changing property picture comes against a more positive backdrop for the global life sciences industry, with capital returning to pharmaceutical and biotechnology businesses during the first half of 2026.

Europe's recovery has been supported by improving debt markets, increased M&A activity and additional public-sector funding for innovation. Cushman & Wakefield said confidence is gradually returning to the region, with stronger venture capital flows and improved financing conditions supporting both corporate activity and occupier sentiment.

The growing adoption of artificial intelligence and greater vertical integration within life sciences businesses are also beginning to influence R&D strategies and the design of laboratory space.

For property owners and developers, however, the recovery in life sciences funding has yet to remove the challenges created by the recent development cycle. Elevated vacancy remains a feature of several markets, while occupiers continue to take a cautious approach to new space and funding remains more selective for early-stage companies.

The volume of recently completed space across the UK's Golden Triangle means competition between buildings is also likely to remain significant as landlords seek occupiers for schemes conceived during stronger market conditions.

But the sharp reduction in construction pipelines could begin to change that balance. Fewer development starts, combined with improving capital markets and expanding clinical trial activity, could allow existing supply to be absorbed without another substantial wave of competing space entering the market.

Cushman & Wakefield said these factors leave the life sciences sector positioned for a more constructive second half of 2026 and beyond, although the recovery in investment activity will need to translate into sustained occupier demand before the real estate market returns fully to balance.