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TwitterThe prime yields in the UK expanded across most property types between 2022 and 2025. In April 2025, yields were the lowest in the London West End offices market at *****percent. In contrast, shopping center yields stood at ****percent. Yield is an indicator for the expected return of a property investment and is calculated as the ratio of rental income and the property value. Several factors can drive yields - increased demand could raise property values, causing lower yields, while a fall in demand could create the opposite effect. Which is the largest commercial real estate sector in the UK? Office real estate has traditionally accounted for the lion’s share of the commercial property investment market, but since the start of the COVID-19 pandemic, investors’ interest has shifted towards industrial real estate. With the e-commerce sector growing and supply chain management becoming more important than ever, so has the industrial and logistic sector. This increase in importance is also reflected in the occupiers market, with the annual take-up exceeding the ten-year average for three years in a row. How is the commercial property market expected to develop in the coming years? The industrial and logistic property market is forecast to outperform retail and offices in terms of capital value growth in the period between 2025 and 2028. According to the same forecast, rental growth is expected to turn positive for all property types in 2025, except for shopping centers.
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TwitterIndustrial multi-lets and industrial distribution properties had the lowest yields in the industrial real estate sector, amounting to **** percent in February 2025. Conversely, yields were the highest for retail warehousing (restricted), at ************* Yield is an indicator for the expected return of a property investment and is calculated as the ratio of rental income and the property value. Several factors can drive yields — increased demand could raise property values, causing lower yields, while a fall in demand could create the opposite effect. Overall, yields expanded across all commercial property types in 2023.
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TwitterBetween 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.
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TwitterPrime yields for high street retail properties in the UK have increased since 2019. As of June 2025, yields were the highest for good secondary properties in markets such as Truro, Leamington Spa, Colchester, and the lowest on Bond Street in London. High street shops on Oxford Street in London had a prime yield of *** percent.
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TwitterCommercial 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.
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Europe Commercial Real Estate Market Size 2025-2029
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. European commercial real estate market is experiencing significant growth, with increasing private investment pouring into the sector. The primary catalyst fueling market growth is the increasing aggregate private investment.This trend is driven by a robust economic environment, favorable demographic shifts, and the ongoing recovery from the COVID-19 pandemic.
Market Size & Forecast
Market Opportunities: USD 31.78 billion
Future Opportunities: USD 91.4 billion
CAGR : 5.7%
However, this growth comes with challenges,rising interest rates pose a threat to affordability and profitability, potentially dampening investor enthusiasm and increasing borrowing costs. As a result, companies must navigate this complex landscape by carefully assessing potential investment opportunities, considering alternative financing options, and adapting to changing market conditions. In order to capitalize on the market's potential and mitigate risks, strategic planning and agility will be essential for success.
What will be the size of Europe Commercial Real Estate Market during the forecast period?
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European commercial real estate market continues to evolve, presenting dynamic opportunities across various sectors. Property risk assessment and building inspection reports play crucial roles in mitigating potential hazards, ensuring compliance with safety standards. Property tax appeals and portfolio diversification help investors minimize risk and maximize returns. Facility management services, property valuation techniques, and property value metrics enable effective asset management. Data-driven investment strategies, including transaction closing costs, space planning solutions, and development approval processes, facilitate informed decision-making. Capital expenditure planning, portfolio optimization, operating expense control, lease contract review, energy consumption audits, and commercial lease terms are essential for maintaining profitability.
For instance, the adoption of energy management systems in commercial buildings has led to a 10% average reduction in energy consumption, contributing to cost savings and environmental sustainability. Commercial real estate market is expected to grow by 3% annually, driven by these evolving trends and the ongoing demand for efficient, sustainable, and compliant properties.
How is this Europe Commercial Real Estate Market segmented?
Europe commercial real estate market market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029,for the following segments.
Type
Rental
Lease
Sales
End-user
Offices
Retail
Leisure
Others
End-User
Corporate
Investment
Government
Location
Urban
Suburban
Geography
Europe
France
Germany
Italy
UK
By Type Insights
The rental segment is estimated to witness significant growth during the forecast period. European commercial real estate market is characterized by dynamic lease renewal negotiations, construction project management, and insurance considerations for green building certification and property refurbishment costs. Zoning regulations compliance and vacancy loss calculations are crucial elements in property acquisition strategy, while property tax optimization and valuation models inform building lifecycle cost analyses. Property management software and tenant occupancy rates are essential for portfolio performance metrics, and market rent surveys guide tenant retention strategies. Portfolio risk management, building code compliance, property data analytics, and rental income projections are integral to asset management strategies. Due diligence processes and capitalization rate analysis are vital during urban planning regulations and space utilization analysis.
In the rental segment, growth is expected to reach over 5% annually, with office rents in the UK, Benelux markets, and peripheral Europe experiencing the highest quarterly growth of 1.8%. However, investment markets remain cautious due to economic uncertainties and rising inflation and finance rates, despite the leasing market's strength and increasing rents. For instance, rental income in the office sector in Paris grew by 3.5% in 2021, reaching €1,122 per square meter per year.
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Market Dynamics
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
European commercial real estate market continues to be a significant global investment destina
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TwitterPrime yields in the commercial real estate market in the UK increased the most for office real estate in the second half of 2023. The yield shift amounted to 0.46 percent, which was about five times the increase for retail real estate. The prime yields for different property types vary widely across the different markets in the UK.
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The UK office real estate market, valued at approximately £X million in 2025 (estimated based on provided CAGR and market size), is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 6% through 2033. Key drivers include a recovering economy, increasing demand from technology and financial sectors, and ongoing investment in infrastructure projects across major cities like London, Birmingham, and Manchester. The rise of flexible workspaces and a focus on sustainable building practices are significant trends shaping the market. However, challenges remain, such as Brexit's lingering effects on international investment and the potential for increased vacancy rates in certain submarkets due to shifting workplace strategies. The sector is highly competitive, with major players like JLL, Knight Frank, CBRE, and others vying for market share. London continues to dominate, but other major cities are witnessing increased activity, fueled by regional economic growth and government initiatives to decentralize business activity. The long-term outlook remains positive, with continued growth anticipated, although the pace might fluctuate depending on macroeconomic conditions and evolving tenant demands. This dynamic market is segmented geographically, with London, Birmingham, and Manchester representing significant hubs. The concentration of businesses in these cities, combined with their robust infrastructure and accessibility, contributes to their strong performance. While the "Other Cities" segment exhibits considerable growth potential, its overall contribution currently remains smaller than the major metropolitan areas. The competitive landscape is defined by large multinational firms and regional players who engage in both development and brokerage activities, reflecting the market’s complexities and opportunities. This competitive intensity drives innovation and necessitates continuous adaptation to shifts in demand and technology. The ongoing evolution of workspace design, encompassing sustainable practices and flexible arrangements, further shapes the market's trajectory. Recent developments include: April 2022: Taking the opportunity to rethink its workplace approach throughout the pandemic, Avison Young used its London Gresham Street office to create two pilot spaces-one transformed and one legacy floor that remained unaltered-to compare the effect of different layouts and amenities. While employees in Avison Young's London office were already working in an agile way before the disruption of COVID-19, the newly configured floor underwent a transformation to an activity-based model., January 2022: IWG, the world's leading provider of workspace, is introducing electric vehicle (EV) chargers across a number of its locations in the United Kingdom to help the nation's hybrid workforce operate more sustainably. IWG is installing EV charging points at a number of its office locations in the United Kingdom to support members' sustainable choices.. Notable trends are: Declining Vacancy Rates and Increasing Rents of Office Spaces in London.
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TwitterIn 2024, the value of commercial real estate capital invested in the United Kingdom (UK) increased notably, signaling an improving sentiment in the sector. Nevertheless, the value of investment remained below 2021 levels, when it peaked at over *** billion British pounds. Commercial real estate includes different property types, such as offices, industrial, logistics, retail, and build-to-rent residential buildings. In 2023, offices and industrial properties attracted the highest share of investments. Meanwhile, shopping centers had the highest investment yields.
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Property unit trust revenue is expected to contract at a compound annual rate of 5.6% over the five years through 2025-26 to £315 million, including an estimated decline of 2% in 2025-26. Regulations under the Markets in Financial Instruments Directive II have inflated costs because of additional tax now charged on research, which has seen the average industry profit drop to 2% in 2025-26. Over recent years, the UK’s property and unit trust sector has seen hefty withdrawals due to the unfavourable regulatory environment and general economic uncertainty. This has prompted many leading firms to wind down their property unit trusts and other open-ended investment funds directly investing in property. Amid the inflationary environment, the base rate environment grew over the two years through 2023-24, prompting prompting investors to shift their demand to alternative investments that offer higher returns — this included cash savings. REITs also became an attractive venture, trading at attractive discounts and weighing on demand for PUTs. Remote working continues to weigh on PUT returns, as softer demand for office space eats away at rental yields. However, PUTs with heavy exposure to the residential market are likely to have outperformed the industry, which has seen rental costs skyrocket amid fierce demand and limited supply. Property unit trust revenue is expected to shrink at a compound annual rate of 1.5% to £308.2 million over the five years through 2030-31. In the short term, economic uncertainty driven by sticky inflation and uncertain trade policy will curb investment and revenue in the property unit trust sector. Yet, adapting investment strategies to include mixed-use developments could cushion this impact by aligning with the evolving demand for hybrid work environments, which has revived demand for efficient and versatile spaces. To strengthen their position, especially against REITs, property unit trusts are moving towards Property Authorised Investment Funds (PAIFs) for better tax efficiency. Managers are also seeking to capitalise on healthy tenant demand for green properties. These spaces ask for higher rental costs and support yields, stemming the drop in revenue over the coming years.
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TwitterEstimated vacancy rates by percentage, for commercial and industrial properties in England. The data cover financial years and are derived from the amount of relief given by local authorities on business rates for empty properties. The data are an indicator of business activity in an area, and serve to monitor the potential for new development. This data is no longer published. Download 1998-2005 data from NESS website
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The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.
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TwitterOpen Government Licence 3.0http://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/
License information was derived automatically
Vacancy rates for commercial and industrial properties in English local authorities (LAs) - Estimates of the value of empty property as a proportion of the total value of property to provide an indication of vacancy rates in each LA. Source: Communities and Local Government (CLG) Publisher: Neighbourhood Statistics Geographies: Local Authority District (LAD), County/Unitary Authority, Government Office Region (GOR), National Geographic coverage: England Time coverage: 1998/99 to 2004/05 Type of data: Administrative data (estimates from National Non-Domestic Rates 3 (NNDR3) return)
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TwitterThese 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/">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">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.
Further details for this statistical release, including data suitability and coverage, are included within the ‘Monthly property transactions completed in the UK with value of £40,000 or above’ quality report.
The latest release was published 09:30 28 November 2025 and was updated with provisional data from completed transactions during October 2025.
The next release will be published 09:30 09 January 2026 and will be updated with provisional data from completed transactions during November 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">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.
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Median monthly rental prices for the private rental market in England by bedroom category, region and administrative area, calculated using data from the Valuation Office Agency and Office for National Statistics.
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Real Estate Market Size 2025-2029
The real estate market size is valued to increase USD 1258.6 billion, at a CAGR of 5.6% from 2024 to 2029. Growing aggregate private investment will drive the real estate market.
Major Market Trends & Insights
APAC dominated the market and accounted for a 64% growth during the forecast period.
By Type - Residential segment was valued at USD 1440.30 billion in 2023
By Business Segment - Rental segment accounted for the largest market revenue share in 2023
Market Size & Forecast
Market Opportunities: USD 48.03 billion
Market Future Opportunities: USD 1258.60 billion
CAGR from 2024 to 2029 : 5.6%
Market Summary
In the dynamic realm of global real estate, private investment continues to surge, reaching an impressive USD 2.6 trillion in 2020. This significant influx of capital underscores the sector's enduring appeal to investors, driven by factors such as stable returns, inflation hedging, and the ongoing demand for shelter and commercial real estate space. Simultaneously, marketing initiatives have gained momentum, with digital platforms and virtual tours becoming increasingly popular.
However, regulatory uncertainty looms, posing challenges for market participants. Amidst this complex landscape, real estate remains a vital component of the global economy, continually evolving to meet the shifting needs of businesses and individuals alike.
What will be the Size of the Real Estate Market during the forecast period?
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How is the Real Estate Market Segmented ?
The 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.
Type
Residential
Commercial
Industrial
Business Segment
Rental
Sales
Manufacturing Type
New construction
Renovation and redevelopment
Land development
Geography
North America
US
Canada
Europe
Germany
UK
APAC
Australia
China
India
Japan
South Korea
South America
Brazil
Rest of World (ROW)
By Type Insights
The residential segment is estimated to witness significant growth during the forecast period.
Amidst the dynamic real estate landscape, the residential sector encompasses the buying and selling of various dwelling types, including single-family homes, apartments, townhouses, and more. This segment experiences continuous growth, fueled by increasing millennial homeownership rates and urbanization trends. Notably, the APAC region, specifically China, dominates the market share, driven by escalating homeownership numbers. Concurrently, the Indian real estate sector thrives due to the demand for affordable housing, with initiatives like Pradhan Mantri Awas Yojana (PMAY) spurring the development of affordable housing projects. In this evolving market, various aspects such as environmental impact studies, capital appreciation potential, title insurance coverage, building lifecycle costs, mortgage interest rates, and structural engineering analysis play crucial roles.
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The Residential segment was valued at USD 1440.30 billion in 2019 and showed a gradual increase during the forecast period.
Property tax appeals, property insurance premiums, property tax assessments, property marketing strategies, building material pricing, property management software, land surveying techniques, zoning regulations compliance, architectural design features, building code compliance, multifamily property management, rental yield calculations, construction cost estimation, energy efficiency ratings, green building certifications, tenant screening processes, investment property returns, property development plans, geotechnical site investigations, sustainable building practices, due diligence procedures, HVAC system efficiency, property renovation costs, market value appraisals, building permit acquisition, and property valuation models significantly impact the sector's progression. As of 2021, the market is projected to reach a value of USD 33.3 trillion, underscoring its substantial influence on the global economy.
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Regional Analysis
APAC is estimated to contribute 64% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The APAC region held the largest share of the market in 2024, driven by factors such as rapid urbanization and increasing spending capacity. This trend is expected to continue during the forecast period. The overall health of the economy signi
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Economic uncertainty and inflationary pressures have spurred a degree of instability in the UK economy in recent years. This has made private investors reluctant to dedicate significant spending towards capital ventures, weighing on lead generation in commercial building construction markets. High construction costs and rising interest rates have created further apprehension among property developers to engage in new ventures, though long-term government capital procurement frameworks have provided some resilience to wavering private investment. Aided by the release of pent-up demand and a stronger-than-anticipated initial economic recovery from the pandemic, the industry recorded a strong rebound in new orders in 2021-22, particularly in private commercial and private industrial markets. However, capacity constraints and the impact of reduced new work volumes secured during the height of the pandemic limited output growth. Growth in new order volumes slowed in 2022-23, as economic uncertainty compounded and rising tender prices reduced the propensity of investors to commit to commercial real estate ventures. High borrowing costs continued to weigh on investor sentiment in 2023-24, with interest rates hitting 5.25% in August 2023, according to the Bank of England. However, a steady stream of work on projects procured through capital procurement frameworks, including Procure23 and the School Rebuilding Programme, has bolstered revenue growth for publicly funded buildings. Overall, revenue is expected to climb at a compound annual rate of 3.6% over the five years through 2025-26 to £21.6 billion, despite a forecast dip of 1.4% in 2025-26 as inflationary pressure hits demand. Revenue is slated to swell at a compound annual rate of 1.1% over the five years through 2030-31 to reach £22.9 billion. The effects of the UK's economic slowdown will continue to bite in the near term as weak order books limit remuneration. Still, commitments made by the government as part of capital procurement frameworks will continue to support demand for commercial building contractors in the coming years, while private-sector order books should improve as borrowing costs come down. Although input price inflation is set to continue to ease in the medium term, material costs are likely to remain elevated and a construction worker shortage will pressure profit. According to the Building Cost Information Service, material costs are anticipated to grow by 15% in the five years through Q3 2030.
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TwitterPrime yields in the office real estate market in Central London increased in 2023. In the fourth quarter of the year, the prime yield was the lowest in the Mayfair/St. James, at **** percent. At the other end of the scale were Stratford and Canary Wharf, where the prime office yield was *** percent. Yields are calculated as the ratio of the annual rental value to the cost of a property and measure the income expected from an investment. While lower yields indicate lower return on investment, they are usually a sign of highly competitive markets with strong investment appetite. In recent years, prime office yields in London have maintained levels below four percent.
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The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.
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REIT Market Size 2025-2029
The reit market size is forecast to increase by USD 372.8 billion, at a CAGR of 3% between 2024 and 2029.
The market is experiencing significant growth driven by the increasing global demand for warehousing and storage facilities. This trend is fueled by the e-commerce sector's continued expansion, leading to an increased need for efficient logistics and distribution networks. An emerging trend in the market is the rise of self-storage as a service, offering investors attractive returns and catering to the growing consumer preference for flexible and convenient storage solutions. However, the market faces challenges as well. Vertical integration by e-commerce companies poses a threat to the industry, as these companies increasingly control the entire supply chain from production to delivery, potentially reducing the need for third-party logistics and storage providers. Additionally, regulatory changes and economic uncertainties can impact REITs' profitability and investor confidence. Companies seeking to capitalize on market opportunities and navigate challenges effectively must stay informed of these trends and adapt to the evolving landscape.
What will be the Size of the REIT 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.
Request Free SampleThe market continues to evolve, with various sectors such as retail, industrial, and commercial real estate experiencing dynamic shifts. Family offices, pension funds, high-net-worth individuals, and sovereign wealth funds increasingly invest in this asset class, seeking diversification and stable returns. Market volatility, driven by economic cycles and interest rate fluctuations, influences investment strategies. Artificial intelligence and property technology are transforming the industry, with data analytics and digital platforms streamlining property management, investment, and appraisal processes. Multifamily housing and single-family homes remain popular choices due to their rental income potential and capital appreciation opportunities. Property taxes, inflation risk, and maintenance costs are essential considerations for investors, requiring effective risk management strategies.
Net operating income, return on equity, and occupancy rates are critical performance metrics. Regulatory environment and property regulations also impact the market, influencing capitalization rates and shareholder value. Institutional investors explore equity and debt financing, real estate brokerage, and securities offerings to capitalize on opportunities. Property investment platforms, real estate syndications, and property management companies facilitate access to diverse offerings. Green building standards and sustainable development are gaining traction, attracting socially responsible investors. The ongoing digital transformation of the real estate sector, including smart buildings and hybrid REITs, offers new investment opportunities and challenges. Investors must stay informed of market trends and adapt their strategies accordingly.
How is this REIT Industry segmented?
The reit 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. TypeIndustrialCommercialResidentialApplicationWarehouses and communication centersSelf-storage facilities and data centersOthersProduct TypeTriple netDouble netModified gross leaseFull servicePercentageGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSingaporeRest of World (ROW).
By Type Insights
The industrial segment is estimated to witness significant growth during the forecast period.The retail and industrial real estate sectors dominate the market, with industrial real estate leading in 2024. The industrial segment's growth is driven by the increasing demand for warehousing space due to the surge in e-commerce and online sales during the COVID-19 pandemic. Supply chain disruptions have compelled companies to lease more warehouse space to store additional inventory, leading to increased occupancy and rental rates. Furthermore, the proximity of fulfillment centers to metropolitan areas caters to the growing number of online consumers. This trend will continue to fuel the expansion of industrial REITs, offering significant growth opportunities for the market. Asset management companies, pension funds, and high-net-worth individuals are increasingly investing in REITs for their attractive dividend yields and potential for capital appreciation. Private equity firms and family offices are also active players in the market, providing equity financing for REITs. Real estate agents and brokers facilitate transactions, while debt financing from banks and i
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TwitterThe prime yields in the UK expanded across most property types between 2022 and 2025. In April 2025, yields were the lowest in the London West End offices market at *****percent. In contrast, shopping center yields stood at ****percent. Yield is an indicator for the expected return of a property investment and is calculated as the ratio of rental income and the property value. Several factors can drive yields - increased demand could raise property values, causing lower yields, while a fall in demand could create the opposite effect. Which is the largest commercial real estate sector in the UK? Office real estate has traditionally accounted for the lion’s share of the commercial property investment market, but since the start of the COVID-19 pandemic, investors’ interest has shifted towards industrial real estate. With the e-commerce sector growing and supply chain management becoming more important than ever, so has the industrial and logistic sector. This increase in importance is also reflected in the occupiers market, with the annual take-up exceeding the ten-year average for three years in a row. How is the commercial property market expected to develop in the coming years? The industrial and logistic property market is forecast to outperform retail and offices in terms of capital value growth in the period between 2025 and 2028. According to the same forecast, rental growth is expected to turn positive for all property types in 2025, except for shopping centers.