As of June 2020, listed office real estate companies had a market capitalization of 66.6 billion euros, while multifamily housing companies' market cap stood at 53.9 billion euros. The third leading sector was retail with a market cap of approximately 20.5 billion euros. Market capitalization measures the equity value of a company and shows how much a public company is worth.

Which real estate asset classes have the best prospects in 2021? The forecast average annual return on investment in the real estate sector varies between different asset classes. Residential real estate in the UK is expected to have the highest average returns, more than three times higher than retail. According to industry experts, data centers and logistic facilities will have some of the best investment and development prospects in Europe in 2021.

Which are the European cities with the best investment and development prospects in Europe? There are many factors that play a role in an investment decision: a city’s economic performance, transport connectivity, forecast real estate returns, availability opportunities for new development, market size and liquidity, governance, digital connectivity, attractiveness to talent, and affordability. In 2021, Berlin, London, and Paris were named the cities with best investment and development prospects in Europe.

Homeowners paid higher monthly costs for their home than renters across nine of the 12 regions in the UK in 2023. Although London had the highest monthly costs for both buying and renting first time property, it also saw some monthly savings resulting from purchase over rental decisions, amounting to 12 British pounds. In comparison, the national average was 27 British pounds.

As of the third quarter of 2020, rental prices have decreased both on an annual and five-year basis. While larger properties saw higher negative rental growth over the past five years, they were less impacted compared with the same quarter of 2019. This highlights one of the effects that the coronavirus crisis has had on rental demand: people are looking for larger properties. Another insight from the prime London market shows outside space also plays a role in driving residential prices.

This statistic shows the house price forecasts for England and London from 2013 to 2020. In 2020, the estimated house price for home in London is 647,500 British pounds (GBP).

The UK car rental market is poised for substantial expansion, increasing from USD 3,797.4 million in 2025 to USD 6,425.3 million by 2035. The market is expected to grow at a CAGR of 5.4% from 2025 to 2035.

Metric	Value
Industry Size (2025E)	USD 3,797.4 Million
Industry Value (2035F)	USD 6,425.3 Million
CAGR (2025 to 2035)	5.4%

Semi-Annual Market Update

Particular	Value CAGR
H1 2024	6.3% (2024 to 2034)
H2 2024	4.8% (2024 to 2034)
H1 2025	6.1% (2025 to 2035)
H2 2025	4.7% (2025 to 2035)

Per Capita Spending Analysis

Year	Population (millions)
2020	67.9
2021	68.3
2022	68.6
2023	69
2024	69.3

Year	Per Capita Spending (USD)
2020	18.82
2021	20.03
2022	22.68
2023	25.58
2024	29.03

Category-wise Insights

Segment (Car Type)	CAGR (2025 to 2035)
Economy Car	4.7%

Segment (End-Use)	CAGR (2025 to 2035)
On-Airport	5.2%

Central London is one of the biggest office real estate markets in Europe. In 2019, the market grew, reaching almost 3.7 million square feet of take up as of the fourth quarter of 2019. In the wake of the coronavirus (COVID-19) pandemic, the period between April and June 2020 saw a steep decline in take-up, falling to almost one third of Q2 2019 take up.

Housing Research Notes are a series of analytical reports from the Greater London Authority focusing on individual issues of relevance to housing policy in London.

The most recent Housing Research Note (published in November 2023) estimates the annual cost to the NHS of homes in poor condition in London. It also estimates the cost of repairing all the homes in London that are in poor condition, calculating how long it would take the savings to pay off the repair costs. The analysis is broken down by tenure and compared with the same figures for the rest of England.

Previous Housing Research Notes have analysed topics including housing supply, Help to Buy policy, short-term lettings, international comparisons, the factors behind increasing private rents and race equality.

The Housing Research Notes are listed below in reverse date order:

• HRN 11 (2023) The cost of poor housing in London (November 2023)
• HRN 10 (2023) The affordability impacts of new housing supply: A summary of recent research (August 2023)
• HRN 09 (2023) Understanding recent rental trends in London’s private rental market (June 2023)
• HRN 08 (2022) Housing and race equality in London (March 2022)
• HRN 07 (2021) Who moves into social housing in London? (November 2021)
• HRN 06 (2021) An analysis of housing floorspace per person (February 2021)
• HRN 05 (2020) Intermediate housing: The evidence base (August 2020)
• HRN 04 (2020) Short-term and holiday letting in London (February 2020)
• HRN 03 (2019) Housing in four world cities: London, New York, Paris and Tokyo (April 2019)
• HRN 02 (2018) Help to Buy in London (September 2018)
• HRN 01 (2018) The profile of London's new homes in 2016/17: Analysis of the London Development Database (May 2018)

This statistic illustrates the annual indices of the nominal value of property transactions on the housing market in London, England from 2000 to 2020. The index was set at 100 as of 2007. The nominal value index oscillated throughout the years, reaching the lowest value of 46.73 in 2009 and the highest value of 105.35 in 2014. The nominal total value of property transactions in London has fallen annually between 2014 and 2020.

The Report Covers UK Residential Real Estate Market Overview and Trends. The Market is Segmented by Type (Apartments and Condominiums and Landed Houses and Villas) and by Key Regions (England, Wales, Northern Ireland, Scotland, and Other Regions).

According to the forecast, the logistic real estate sector in the United Kingdom (UK) will see continue increasing until 2025. In 2022 and 2023, rental growth is expected to accelerate, reaching an increase of between 2.2 and 3.9 percent in 2023. Over the five-year period, London is forecasted to measure annualized rental growth of 3.2 percent. In recent years, the logistics real estate market has been growing in terms of both investment and take up. 2019 and 2020 were marked by the coronavirus (COVID-19) crisis and finalizing Brexit negotiations but they also accelerated some trends in the market. With the growth of e-commerce and the online grocery market, there will be increasing demand for near-urban warehousing.

The office real estate investment market experienced the weakest year on record in 2023. The value of capital allocated to office real estate in that year stood below five billion British pounds - about three billion British pounds below the 2020 figure. In 2013, which was the strongest year on record, the market saw over 18.5 billion British pounds in investment. Brexit, hybrid work, and the unfavorable economic climate are some of the major challenges which contributed to the decline in investment sentiment in the past five years. Vacancy rates stood above 10 percent in many London districts in 2023, showing a decline in occupier demand.

Rental price statistics historical data time series (indices and annual percentage change). These are official statistics in development.

In the five-year period between 2024 and 2028, the prime residential rent for existing properties in Greater London is expected to increase by over 19 percent. The highest percentage change is expected to occur in 2024, when rents are to rise by 5.5 percent. In the UK. rental growth has accelerated notably since 2021, with March 2024 experiencing a decade-high annual percentage growth. The trend reflects the complex interplay between housing affordability, mortgage rates, and supply of rental homes, as the UK housing market navigates a period of transition.

There is a more recent version, Local Housing Allowance (LHA) Rates per Broad Rental Market Area BRMA, UK 2012-2025 v2.

This dataset contains the weekly Local Housing Allowance (LHA) rates for Broad Rental Market Areas (BRMAs) across the UK from 2012/13 to 2024/25. LHA is a means-tested housing benefit for households in the private rented sector. BRMAs are the spatial units used for the administration of LHA. Since 2011, there have been 200 BRMAs in total (England: 152; Northern Ireland: 8; Scotland: 18; Wales: 23; but note that one BRMA spans England and Wales). LHA rates set the maximum level of housing benefit a household can receive in a given BRMA and is dependent on the size of their property. The dataset also includes estimates of the 30th centile rent for each BRMA as this is calculated separately by the Government agencies as a reference point for LHA.

LHA rates are set from April each year, based on evidence of market rents collected by the relevant government agency in each country. From April 2011, the maximum LHA rate was reduced from the median rent for each BRMA to the 30th centile rent. From 2012 onwards, limits were placed on the annual increases in LHA rates:

• 2012 - no increase;
• 2013 - increase limited to the Consumer Price Index;
• 2014 /2015 - maximum increase 1%;
• 2016-19 - no increases;
• 2020 - rates reset to 30th centile;
• 2021-23 - no increases; and
• 2024 - rates reset to 30th centile.

There are no 30th centile rents for any part of Great Britain for 2012/13 and none for Northern Ireland in 2018. There are a small number of cases where 30th centile rents are missing in some BRMAs, presumably due to insufficient data on which to make a market assessment.

Details on sources and method of contruction here: https://github.com/nick-bailey/LHA-rates-for-BRMAs.

The financial and operational success of property development markets depends on a range of socio-economic factors, such as property values, market sentiment and credit conditions. Building project developers' revenue is forecast to slide at a compound annual rate of 3.2% to £35.8 billion over the five years through 2024-25. The economic shock caused by the pandemic had a devastating impact on property development market in 2020-21. Severe supply chain and market disruption caused sentiment to wane and transaction activity fell, while property values initially depreciated and rental fee income stalled. Revenue rebounded in 2021-22, aided by low interest rates, house price inflation and a stronger than anticipated initial economic recovery from the pandemic. Nonetheless, revenue remained below pre-pandemic levels as growth was hindered by a further net deficit on revaluation of assets and lower rental income in office and brick-and-mortar retail markets. The fallout from the pandemic has caused developers to re-align investment towards lower-risk real estate markets which are likely to be more resilient to price shocks. Inaflationary pressures and rising interest rates spurred a further hit to portfolio valuations, discouraging developers from pursuing new developments. Revenue is forecast to grow by 2.5% in the current year, as interest rate cuts spur renewed growth in property values. Revenue is slated to climb at a compound annual rate of 1.3% to reach £38.2 billion over the five years through 2029-30. Following recent interest rate cuts, more stable economic conditions are set to continue to support improved sentiment in the near-term, spurring developers to pursue new ventures. Opportunities for growth are set to be most prominent in high-yield office markets and the technology sector, with growing use of artificial intelligence set to drive demand for the development and construction of data centres. Loosened planning policy is set to drive momentum in residential real estate markets, though more will need to be done for the government to achieve ambitious housebuilding targets.

Residential building contractors are contingent on the propensity of property developers to invest in new ventures; movements in property prices; government schemes intended to boost the housing supply; and underlying sentiment in the housing market. Industry contractors have endured turbulent operating conditions over the past five years, leading to volatile shifts in revenue and profitability. Revenue is forecast to grow at a compound annual rate of 1% over the five years through 2024-25, reaching £97.4 billion. The pandemic caused a significant drop in output in 2020-21, as restrictions placed on on-site activity and fewer enquiries for new housing units reduced revenue opportunities. Aided by government support for the housing market and the release of pent-up demand, 2021-22 was characterised by a strong rebound in activity, though materials and labour shortages maintained constraints on output. Mounting supply chain disruption and heightened economic uncertainty maintained pressure on output in the following year, though revenue growth was maintained by growth in average selling prices. Interest rate hikes and inflationary pressures led to a more subdued housing market in 2022-23, holding back the number of housing starts and completions during the year. This was followed by a slump in new residential building construction in the following year, as high borrowing costs and uncertain market conditions caused developers to scale back investment plans. Revenue is set to grow by 1.5% in 2024-25, aided by a slight improvement in new orders for residential building construction and an uptick in average selling prices. Revenue is slated to climb at a compound annual rate of 1.5% to reach £105.1 billion over the five years through 2029-30. Housebuilding activity is set to grow in the medium-term, aided by the release of pent-up demand. Nonetheless, significant uncertainty remains, with mortgage rates likely to settle well-above pre-pandemic levels and supply chains remaining fragile. The new government’s pledge to deliver 1.5 million houses during the first five years of parliament will boost demand for industry contractors, though the full impact of this on growth prospects is dependent on the nature and extent of accompanying funding plans.

Conditions in the residential and commercial property markets heavily impacts revenue for removal services. Demand is also influenced by customers' willingness to spend on the range of extras specialist removal companies offer. Brexit led to an uptick in corporate relocations, with many multinational companies seeking to move from London to other places in Europe, with Dublin being the most popular location. The COVID-19 pandemic had a mixed impact on removal service providers. It initially led to a standstill in the housing market, with people opting to wait until they had greater certainty over their financial situation before moving house. However, government policies post-pandemic stimulated the housing market, like the National Planning Policy Framework, significantly ramped up demand for home removals, helping to prevent a complete collapse in profit. In terms of corporate relocations, the pandemic was a tough time for businesses, with an average of 48 retail, dining and hospitality outlets going out of business each day in 2020, according to the Local Data Company. These companies and the ones that would eventually replace them required moving services, helping to boost revenue. Residential transactions fell in 2023-24 as high borrowing costs dissuaded people from buying houses and companies from relocating, although subsiding inflation and interest rate cuts in 2024-25 expanded residential transactions, limiting this revenue dip. Over the five years through 2024-25, revenue is forecast to contract at a compound annual rate of 1.4% to reach £1.2 billion, despite being expected to climb by 1.2% in 2024-25. Looking forward, the UK's housing shortage presents a ceiling to revenue associated with home moving. Pent-up consumer demand to move homes when economic headwinds subside presents an opportunity for expanded growth. Profit will be constrained by investment into electric fleets and establishing online platforms, although this will bring long-term benefits, including greater contract winning. Over the five years through 2029-30, revenue is forecast to grow at a compound annual rate of 2.1% to reach just under £1.4 billion.

Rent Inflation in the United Kingdom decreased to 7.40 percent in February from 7.80 percent in January of 2025. This dataset includes a chart with historical data for the United Kingdom Rent Inflation.