As of the last month of 2024, the value of the commercial real estate market in the United Kingdom (UK) was almost *** trillion U.S. dollars, which was an increase of about *** million U.S. dollars compared to 2023. After Germany, the UK was the second-largest commercial real estate market in Europe.

Between 2025 and 2029, shopping center space rent is expected to see the highest annualized return on investment among different types of commercial properties in the UK. Total returns look at the expected rate of return on a real estate investment. On the other hand, industrial properties are not only forecast to see the highest commercial real estate rental growth, but also the highest capital value growth by 2029.

Doorda's UK Commercial Real Estate Data provides a comprehensive database of over 6 million commercial locations sourced from 20 data sources, offering unparalleled insights for business intelligence and analytics purposes.

Volume and stats: - 6M Commercial locations with internals - 1.7M Named Commercial Occupants - 1.4M Non-Domestic Energy Performance Inspections

Our Commercial Real Estate Data offers a multitude of use cases: - Market Analysis - Competitor Analysis - Lead Generation - Risk Management - Location Planning

The key benefits of leveraging our Commercial Real Estate Property Data include: - Data Accuracy - Informed Decision-Making - Competitive Advantage - Efficiency - Single Source

Covering a wide range of industries and sectors, our data empowers organisations to make informed decisions, uncover market trends, and gain a competitive edge in the UK market.

Commercial real estate in the UK is expected to see an annualized total return of *** percent between 2025 and 2029. During that period, capital values are forecast to grow faster than rents. Within the sector, shopping center, industrial, and retail warehouse real estate stands out as the commercial property type with the highest total returns.

The UK commercial real estate market, valued at approximately £149.67 million in 2025, exhibits a robust growth trajectory, projected to expand at a Compound Annual Growth Rate (CAGR) of 4.31% from 2025 to 2033. This growth is fueled by several key drivers. Increasing urbanization and population density within major UK cities like London, Manchester, and Birmingham are creating heightened demand for office, retail, and industrial spaces. The burgeoning e-commerce sector is significantly boosting demand for logistics and warehousing facilities, further propelling market expansion. Government initiatives promoting sustainable development and infrastructure improvements are also contributing positively. However, economic uncertainties, fluctuating interest rates, and potential supply chain disruptions pose challenges to sustained growth. The market segmentation reveals a diversified landscape with offices, retail, and industrial & logistics sectors holding significant shares. The hospitality sector, while facing its own unique challenges, shows resilience, and the "other types" category, encompassing schools and recreational areas, indicates growth opportunities within specialized commercial real estate niches. Key players such as Land Securities Group PLC, Segro PLC, and British Land are strategically positioned to benefit from these market dynamics. Their expertise in property management, development, and investment strategies enables them to effectively navigate the evolving market landscape. The forecast period (2025-2033) suggests a consistent upward trend, albeit with potential fluctuations reflecting broader economic conditions. The diverse regional distribution of commercial real estate across the UK, encompassing London and other major cities, indicates opportunities for regional specialization and targeted investment. While challenges exist, the underlying strength of the UK economy and its attractiveness as a business hub support a positive outlook for the commercial real estate market over the long term. The relatively high CAGR suggests a healthy growth environment, particularly if factors such as improved infrastructure and ongoing investment in sustainable practices are maintained. This indicates considerable potential for investors and developers keen to capitalise on the ongoing expansion and diversification of the UK commercial real estate sector. Recent developments include: October 2023: British Land received a resolution to grant planning permission for an approximately 140,000 sq. ft multi-level last-mile logistics scheme on Mandela Way, Southwark. This project represents the latest addition to British Land’s 2.9 million sq. ft pipeline. Situated near the junction of New Kent Road, Old Kent Road, and Tower Bridge Road, the site will serve as a last-mile logistics hub for Southwark and central London., July 2023: British Land and Landsec formulated a comprehensive set of recommendations aimed at regenerating UK towns and cities. Their goal is to stimulate more growth, create additional homes, and generate more job opportunities by enhancing how the planning system supports brownfield regeneration. As major players behind some of Britain’s most significant regeneration projects, including Landsec’s 24-acre Mayfield neighborhood in central Manchester and British Land and AustralianSuper’s 53-acre Canada Water development in London, these property companies bring extensive experience in large-scale, complex urban developments. The insights gained from such projects have been applied and refined in their latest paper.. Key drivers for this market are: Growth in the Country's Logistics Sector and Warehouse Space, Increasing Demand for Co-working Office Spaces; Increasing Infrastructure Investments. Potential restraints include: Growth in the Country's Logistics Sector and Warehouse Space, Increasing Demand for Co-working Office Spaces; Increasing Infrastructure Investments. Notable trends are: Office Segment Showing Significant Growth in the Market.

UK Commercial Real Estate Market size was valued at USD 295 Billion in 2023 and is projected to reach USD 435 Billion by 2031, growing at a CAGR of 5% during the forecast period 2024-2031.

UK Commercial Real Estate Market: Definition/Overview

In the UK, Commercial real estate includes properties used only for commercial purposes or to create money, such as office buildings, shopping malls, warehouses, industrial facilities, and mixed-use complexes. Its principal uses include leasing space to tenants for operations such as retail, corporate offices, manufacturing, and logistics. This sector is crucial for economic growth since it provides infrastructure for businesses and creates jobs in large numbers.

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Europe Commercial Real Estate Market Size 2025-2029

The europe commercial real estate market size is forecast to increase by USD 91.4 billion at a CAGR of 5.7% between 2024 and 2029.

The European commercial real estate market is experiencing significant growth, with increasing private investments fueling the expansion. This trend is driven by the region's robust economic conditions and the attractiveness of European markets to global investors. However, the market's growth trajectory is not without challenges. Rising interest rates pose a threat to potential investors, increasing the cost of borrowing and potentially reducing the appeal of commercial real estate investments. Additionally, regulatory hurdles and supply chain inconsistencies temper growth potential, necessitating careful planning and strategic navigation. Despite these challenges, opportunities abound for companies seeking to capitalize on the market's momentum. By staying informed of regulatory changes and supply chain developments, and maintaining a strong understanding of market trends, businesses can effectively navigate these challenges and seize growth opportunities in the European commercial real estate market.

What will be the size of the Europe Commercial Real Estate Market during the forecast period?

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In Europe's commercial real estate market, environmental impact assessments are increasingly important in property development, as sustainability becomes a key consideration. Real estate consulting firms provide valuable insights through property appraisals and predictive modeling, helping investors make informed decisions. Zoning regulations and planning permissions shape the landscape for asset management, while green certifications offer competitive advantages. Flexible workspaces, such as serviced and coworking spaces, are on the rise, catering to the changing needs of businesses. Energy audits and facility management ensure efficient operations, reducing costs and enhancing tenant satisfaction. Lease administration, tenant screening, and property valuations are essential components of effective asset management. Real estate analytics and property listings enable data-driven insights, driving transaction advisory services. Construction management and project management are crucial for delivering high-quality buildings, while virtual offices provide flexibility for remote teams. Property marketing and maintenance round out the essential services for successful real estate investments.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeRentalLeaseSalesEnd-userOfficesRetailLeisureOthersEnd-UserCorporateInvestmentGovernmentLocationUrbanSuburbanGeographyEuropeFranceGermanyItalyUK

By Type Insights

The rental segment is estimated to witness significant growth during the forecast period.

Commercial real estate in Europe encompasses various sectors, including rental, office buildings, industrial properties, residential, and retail spaces. Debt financing plays a crucial role in the market, with mortgage lending and equity financing facilitating property transactions. Logistics facilities are in high demand due to the growth of e-commerce, necessitating infrastructure development and urban planning. ESG factors are increasingly influencing investment decisions, with a focus on energy efficiency, green building, and property technology. Building Information Modeling (BIM) and big data analytics are transforming property management and due diligence. Occupancy rates and rental yields remain essential indicators of market health, with vacancy rates impacting property values. Urban regeneration and mixed-use developments are shaping cityscapes, while market volatility and real estate cycles pose risks. Artificial intelligence, the Internet of Things, and smart building technologies are revolutionizing property management and investment strategies. Despite the robust leasing market and rising rents, investment markets exhibit caution due to economic uncertainties and finance rates. Office rental growth, particularly in the UK, Benelux markets, and peripheral Europe, accelerated in the third quarter of 2022, increasing annual growth to over 5%. However, buyers remain hesitant to pay earlier price levels, impacting capital markets and property values. Risk management and portfolio diversification are essential strategies for navigating these evolving trends.

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The Rental segment was valued at USD billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challeng

Prime office had the highest rental growth in the United Kingdom in the second half of 2023. Office rents rose by 4.1 percent, almost twice the increase in the second-best performing property type, industrial real estate. On average, all prime property experienced a rental increase of 2.1 percent.

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Commercial Real Estate Market Size 2025-2029

The commercial real estate market size is forecast to increase by USD 427.3 billion, at a CAGR of 4.6% between 2024 and 2029.

The market is experiencing significant growth, fueled by increasing marketing initiatives and the rising emphasis on remote work and online shopping. This trend is transforming the commercial real estate landscape, with a shift towards adaptive spaces that cater to the evolving needs of businesses and consumers. The increasing adoption of marketing strategies, such as digital marketing and experiential retail, is driving demand for commercial properties that can effectively showcase brands and create memorable customer experiences. Additionally, the shift towards remote work and online shopping is leading to a surge in demand for data centers, logistics facilities, and flexible office spaces.
However, this market is not without challenges. The rapid pace of technological advancements and changing consumer preferences pose significant obstacles for commercial real estate developers and investors. The need to adapt to these shifts and stay competitive requires a deep understanding of market trends and the ability to pivot quickly. Furthermore, regulatory changes and economic instability can also impact the market's growth trajectory. To capitalize on the opportunities and navigate the challenges effectively, companies must stay informed about the latest market trends and consumer preferences. Investing in technology and innovation, while also maintaining flexibility and adaptability, will be key to success in the evolving the market.

What will be the Size of the Commercial Real Estate Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, with dynamic market activities unfolding across various sectors. Environmental impact assessments are increasingly crucial in property development, shaping the design and construction process. Tenant representation plays a pivotal role in securing suitable spaces for businesses, while 3D modeling facilitates effective space planning and data visualization. Due diligence is an ongoing process, ensuring compliance with legal and regulatory requirements. Property tax assessments, vacancy rates, and property management are essential components of commercial real estate investment strategies. Distressed properties present opportunities for joint ventures and strategic investments, while interior design and machine learning contribute to enhancing tenant experience and optimizing building performance.

Investment properties, industrial properties, and urban planning strategies benefit from big data analytics and virtual tours, enabling informed decision-making. Commercial mortgages and brokerage services facilitate the buying and selling of properties, while occupancy costs and building codes ensure operational efficiency and safety. The market is a complex, ever-changing landscape, with continuous market dynamics shaping its various sectors. From environmental impact assessments to tenant representation, property management, and investment strategies, the integration of various components is essential for success in this dynamic industry.

How is this Commercial Real Estate Industry segmented?

The commercial real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Offices
  Retail
  Leisure
  Others


Channel

  Rental
  Lease
  Sales


Transaction Type

  Commercial Leasing
  Property Sales
  Property Management


Service Type

  Brokerage Services
  Property Development
  Valuation Consulting
  Facilities Management


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By End-user Insights

The offices segment is estimated to witness significant growth during the forecast period.

The U.S. commercial real estate market is undergoing major shifts, particularly in the office segment, driven by flexible work models, evolving corporate needs, and technological advancements. Businesses now favor adaptable, tech-enabled spaces to attract talent, fueling demand for co-working hubs like Regus and WeWork. Industry leaders such as Google and Amazon are redefining office design to boost collaboration and satisfaction.

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The Offices segment was valued at USD 476.50 billion in 2019 and showed a gradual increase during th

Number of Businesses statistics on the Commercial Real Estate Agents industry in the UK

The Report Covers Biggest Hospitality Companies in UK and it is Segmented by Property Type (Hotels and Accommodations, Spas and Resorts, and Other Property Types). The report offers market size and forecast for Hospitality Real Estate Sector in the United Kingdom in value (USD billion) for all the above segments.

Market Size statistics on the Commercial Real Estate Agents industry in the UK

These National Statistics provide monthly estimates of the number of residential and non-residential property transactions in the UK and its constituent countries. National Statistics are accredited official statistics.

England and Northern Ireland statistics are based on information submitted to the HM Revenue and Customs (HMRC) Stamp Duty Land Tax (SDLT) database by taxpayers on SDLT returns.

Land and Buildings Transaction Tax (LBTT) replaced SDLT in Scotland from 1 April 2015 and this data is provided to HMRC by https://www.revenue.scot/" class="govuk-link">Revenue Scotland to continue the time series.

Land Transaction Tax (LTT) replaced SDLT in Wales from 1 April 2018. To continue the time series, the https://gov.wales/welsh-revenue-authority" class="govuk-link">Welsh Revenue Authority (WRA) have provided HMRC with a monthly data feed of LTT transactions since July 2021.

LTT figures for the latest month are estimated using a grossing factor based on data for the most recent and complete financial year. Until June 2021, LTT transactions for the latest month were estimated by HMRC based upon year on year growth in line with other UK nations.

LTT transactions up to the penultimate month are aligned with LTT statistics.

Go to Stamp Duty Land Tax guidance for the latest rates and information.

Go to Stamp Duty Land Tax rates from 1 December 2003 to 22 September 2022 and Stamp Duty: rates on land transfers before December 2003 for historic rates.

The latest release was published 09:30 27 June 2025 and was updated with provisional data from completed transactions during May 2025.

The next release will be published 09:30 31 July 2025 and will be updated with provisional data from completed transactions during June 2025.

https://webarchive.nationalarchives.gov.uk/ukgwa/20240320184933/https://www.gov.uk/government/statistics/monthly-property-transactions-completed-in-the-uk-with-value-40000-or-above" class="govuk-link">Archive versions of the Monthly property transactions completed in the UK with value of £40,000 or above are available via the UK Government Web Archive, from the National Archives.

SafeGraph Places provides baseline location information for every record in the SafeGraph product suite via the Places schema and polygon information when applicable via the Geometry schema. The current scope of a place is defined as any location humans can visit with the exception of single-family homes. This definition encompasses a diverse set of places ranging from restaurants, grocery stores, and malls; to parks, hospitals, museums, offices, and industrial parks. Premium sets of Places include apartment buildings, Parking Lots, and Point POIs (such as ATMs or transit stations).

SafeGraph Places is a point of interest (POI) data offering with varying coverage and properties depending on the country. Note that address conventions and formatting vary across countries. SafeGraph has coalesced these fields into the Places schema.

SafeGraph provides clean and accurate geospatial datasets on 51M+ physical places/points of interest (POI) globally. Hundreds of industry leaders like Mapbox, Verizon, Clear Channel, and Esri already rely on SafeGraph POI data to unlock business insights and drive innovation.

The commercial real estate sector in the UK saw a slight decrease in commercial real estate investment in January 2024. However, investment activity improved compared to the same month in 2023. The residential and PBSA (purpose-built student accommodation) segments attracted the most investment, totaling *** million British pounds.

The United Kingdom Real Estate Market Report is Segmented by Property Type (Residential and Commercial), by Business Model (Sales and Rental), by End User (Individuals/Households, Corporates & SMEs and Others), and by Country (England, Scotland, Wales, and Northern Ireland). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

Number of Businesses statistics on the Commercial Property Remodelling industry in United Kingdom

UK Real Estate Services Market size is growing at a good pace over the last few years and is expected to grow at a CAGR of 5.5% over the forecasted period 2026 to 2032.

UK Real Estate Services Market: Definition/ Overview

Real estate services refers to a wide range of professional activities that support the acquisition, sale, leasing, and management of real estate properties. These services include property appraisal, market analysis, marketing tactics, and transaction support, which help customers efficiently negotiate the complexity of real estate transactions. Real estate services have a wide range of applications, including residential sales, commercial leasing, property management, and investment consulting, all of which assist individuals and businesses in making informed choices in the ever-changing real estate market.