Real estate update: The UK remains Europe’s top market
The UK remains Europe’s top market for real estate transactions, according to the latest Cushman & Wakefield’s Visions report. Despite a two-year decline in overall transaction levels, investment activity is robust across healthcare, hospitality, and retail sectors.
Similarly, we mentioned in our UK Real Estate Market Outlook 2025 that the CBRE expects the commercial real estate sector to rebound with a projected 15% increase in investment to £53 billion in 2025. With growth-focused economic policies on the horizon, the UK real estate market offers promising opportunities in 2025.
The Visions report offers a detailed analysis of trends shaping the UK real estate sector, highlighting areas of growth.
Here are some key highlights from the Visions report:
Offices
London’s office market is the world’s most liquid, with 1.5% returns as of Q3 last year, the highest in two years.
Demand for high-quality, new, or refurbished spaces is pushing rental growth, with 68% of 2023 leasing activity focused on these assets.
City rents are projected to grow 4.4% annually through 2028, with top-tier rents rising 7.6% per year.
Leisure
Investment in experiential leisure grew by over 250%, reaching £225 million in 2022-2023.
Revenue from live sports, music, and hotel accommodation has soared, driven by brand-focused and innovative assets.
Net Zero
The UK is a key destination for CleanTech and GreenTech investment, hosting 9 of Western Europe’s top 25 locations.
Retrofitting buildings to meet EPC Grade B standards may cost £71 billion, but ESG-focused strategies are thriving, with funds rising from £1.1 billion to £4.3 billion annually since 2015.
AI
AI is transforming real estate, driving demand for data centres and improving investment decisions through enhanced data access and Automated Valuation Models (AVMs).
Recruitment
These trends are expected to significantly impact recruitment in the real estate industry. The market's growth will intensify the existing shortage of skilled professionals, particularly in roles such as valuation surveyors and asset managers across the UK.
As investment activity increases, demand for talent will rise across all real estate sectors. To address these skills gaps and adapt to the market's evolving needs, recruiters must focus on facilitating career transitions and supporting upskilling initiatives.
As real estate recruitment experts, we are committed to taking proactive steps to attract, retain, and develop the talent essential for success in this ever-evolving market.