The UK Real Estate Market Outlook 2025
As we look ahead to 2025, the UK real estate market is poised for recovery and growth. According to CBRE’s latest report, the commercial real estate sector, which faced significant challenges in recent years, is expected to rebound with a projected 15% increase in investment to £53 billion in 2025
This optimistic outlook is driven by several factors, including lower interest rates and reduced debt costs, creating a more favourable environment for investors.
Economic recovery and market growth
In 2024, the UK economy grew by 1%, with inflation falling to target levels, prompting the Bank of England to start cutting interest rates. The economic landscape is set to improve further, and this steady recovery provides a solid foundation for the real estate market to regain momentum. Key sectors such as industrial and logistics are anticipated to attract significant investment.
Additionally, large-scale regeneration projects combining residential, commercial, and leisure spaces will likely become focal points for development from 2025. Potential reductions in interest rates by the end of 2025 could further stimulate development and investment activity, offering a renewed sense of stability and growth for the market.
The recruitment perspective
This anticipated market rebound has significant implications for recruitment within the real estate sector. As investment increases and development projects gain momentum, the demand for skilled professionals is expected to rise sharply. Sectors such as valuation will likely see heightened activity, creating opportunities for professionals at all levels.
A collaborative approach
The road to recovery in the UK real estate market will require a collaborative approach between industry stakeholders, government bodies, and recruitment professionals. By addressing challenges such as the skills shortage and planning constraints, the sector can build a resilient workforce capable of driving growth and innovation.
As we move closer to 2025, the real estate sector’s renewed stability and growth will bring exciting opportunities for both investors and professionals. As a recruiter, we plan to remain proactive in our strategies to attract, retain, and develop the talent needed to thrive in this dynamic market.