The highest rental yield in the UK property market in the first quarter of 2024 was in the North East region, amounting to **** percent. Conversely, private rental homes in London had the lowest average gross yield, at **** percent. Rental yield is a measure of profitability and shows the annual rental income as a share of the property price. Although higher yields imply a higher annual return, they do not take into consideration the rental growth and house price appreciation potential of the property.

Prime 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.

The rental yield for buy-to-let properties varied widely across different property types in the United Kingdom. Business mortgages, or buy-to-let (BTL) mortgages, are a loan sold to property investors, rather than to people who want to purchase a home to live in. Semi-detached houses had the lowest rental yield at **** percent in the second quarter of 2022. Though a higher yield suggests profitability, it is also indicates higher risk.

Industrial 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.

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.

The 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.

Scotland provided the highest gross rental yield for buy-to-let properties in the UK in the third quarter of 2024. The average yield in Scotland amounted to *** percent, making it one of the most profitable markets. In London, the average yield was *** percent, reflecting the highly competitive nature of the capital.

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.

14% of White British households rented their home privately in the 2 years from April 2021 to May 2023 – the lowest percentage out of all ethnic groups.

Monetary values represent £GBPs in thousands (k). The highlighted row represents the point at which the investment has risk of becoming lossmaking.

This data sets out information on the size and shape of England's Broad Rental Market Areas (BRMAs) and the rates of Local Housing Allowance (LHA) set for that area. The notes below explain more about what a BRMA and what Local Housing Allowance are, and how both the areas and the rates are set. The information comes from the Valuation Office Agency (VOA) and is available online at www.gov.uk. Claimants should seek advice about their individual claims from their local authority Housing Benefit Department. The VOA provides a search facility to help applicants identify the relevant LHA for them. This search is based on postcode and property size.

In the third quarter of 2024, ** percent of landlords reported positive sentiment about rental yields, while ** percent expressed optimism about the overall lettings business. However, only **** percent anticipated that the UK economy would improve during this period.

The VR Direct Rates dataset offers a comprehensive and up-to-date view of vacation rental pricing and availability, sourced directly from property management systems.

With strong coverage in North America and limited global data, this dataset provides granular, unit-level information on rates, occupancy, and property characteristics.

Updated daily, it enables real-time analysis of pricing strategies, demand patterns, and market trends across various locations and property types.

This dataset is an invaluable resource for revenue managers, market analysts, and investors in the vacation rental industry, facilitating data-driven decision-making in pricing, investment, and competitive positioning

In 2023, houses in multiple occupation (HMO) and flats in multi-unit blocks saw the highest property yield in the United Kingdom. In the second quarter of the year, the rental yield of HMOs was *** percent. Business mortgages, or buy-to-let (BTL) mortgages, are a loan sold to property investors, rather than to people who want to purchase a home to live in.

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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

This data sets out levels of support with housing costs, known as the Local Housing Allowance (LHA) rate, for 2013-14, 2014-15, 2015-16, 2016-17, 2017-18, 2019-19, 2019-20, 2020-21 and 2021-22. The Allowance is set for different property sizes in each Broad Rental Market Area, or BRMA. These are not the same as county or district areas. You can find out more about BRMAs here. The Valuation Office Agency (VOA) completes a six-monthly survey of private rents across England which is used to set the LHA rates. However in 2016-17, many rates were frozen at 2015-16 levels due to national austerity measures. Since then, selected BRMAs have had their LHA rates adjusted, despite the general freeze. In 2020/21 rates were increased up to a set maximum to help mitigate the effects of the covid-19 pandemic, so LHAs would support a higher level rent than previously. For 2021-22 LHA rates have been held at the same level as 2020-21. The data comes from the Valuation Office Agency (VOA) and is available online at www.gov.uk. Individuals should seek advice about their individual claims from their local authority benefit team. The VOA provides a search facility to help applicants identify the relevant LHA for them. This search is based on postcode and property size and can be found at http://lha-direct.voa.gov.uk/search.aspx.

Snapshot img

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

This statistic illustrates the European cities with the smallest annual residential rental yields as of 2016, broken down by city. It can be seen that Inner London, United Kingdom (UK), had the smallest annual rental yield at that time, with a return of *** percent at that time. Inner Paris (France) and Vienna (Austria) ranked joint second, in terms of smallest yield, both with an annual rental yield of *** percent as of 2016.

Global short-term rental intelligence sourced from leading Online Travel Agencies (OTAs). The OTA Real Estate Dataset provides a comprehensive view of the global vacation rental market by combining verified OTA property listings with valuation, tax, and physical asset data. Each record includes unique property identifiers, geolocation details, pricing indicators, and occupancy metrics—enabling robust market analysis and investment-grade insights.

Continuously sourced from major OTA platforms and refined through proprietary data-cleaning models, this dataset ensures accuracy, consistency, and comparability across regions. Available globally with flexible delivery via API or flat files, it serves as a foundational dataset for those analyzing market performance, forecasting development potential, or conducting housing research.

Key Highlights: Granular Real Estate Intelligence: Combines OTA listing data with valuation, tax, and property attributes for a holistic view of market activity.

Global and Standardized: Harmonized schema and coverage across countries, cities, and neighborhoods for cross-market comparability.

High-Fidelity Data: Proprietary normalization removes duplicates and outliers to ensure analytical precision.

Flexible Access: Delivered through API or CSV, updated regularly for timely decision-making.

Ideal For: Real Estate Investors: Identify high-performing short-term rental markets and assess yield potential.

Developers & Urban Planners: Evaluate spatial demand patterns and inform development feasibility studies.

Financial Institutions: Integrate standardized OTA data into underwriting, risk, and valuation models.

Tourism Economists & Market Researchers: Quantify the impact of vacation rentals on local housing and tourism dynamics.

Use It To: Benchmark short-term rental performance by region or property type.

Analyze shifts in rental demand and pricing over time.

Support market-entry, site-selection, and feasibility studies with real OTA-backed data.

Enhance research and policy analysis with consistent, globally comparable property-level insights.

--- DATASET OVERVIEW --- This dataset delivers critical market intelligence including occupancy rates, average daily rates, revenue per available rental, booking pace, and seasonal demand patterns across different geographic areas. With daily updates, AI-driven forward projections, and four years of historical data, it offers property managers, investors, and market analysts the essential benchmarks needed to understand market performance, identify emerging trends, and develop data-driven strategies in the rapidly evolving vacation rental sector.

The data is sourced from major OTA platforms and processed through advanced aggregation methodologies that ensure statistical validity while preserving crucial market signals. Our proprietary algorithms enhance the raw data with sophisticated trend analysis and forward-looking projections, enabling users to anticipate future market conditions with increased confidence.

--- KEY DATA ELEMENTS --- Our dataset includes the following core performance metrics for each property: - Property Groups: Group by property type, bedroom counts, key amenities groups - Geographic Identifiers: Multiple geographic levels (vacation area, vacation region, county, etc) - Temporal Dimensions: Daily, weekly, monthly, and quarterly performance metrics - Occupancy Metrics: Market-wide occupancy rates and booking pace indicators - Pricing Metrics: Average daily rates (ADR), revenue per available rental night (RevPAR), and price trends - Booking Pattern Indicators: Average lead time, length of stay, and booking frequency - Seasonality Metrics: Seasonal demand patterns and year-over-year comparisons - Demand Forecasts: Forward-looking projections for occupancy and pricing trends - Historical Pacing: Snapshots into how stay date ranges developed for tracking pacing trends - Forward Looking Trends: Area KPIs 180-365 days into the future

--- USE CASES --- Market Performance Benchmarking: Property managers and owners can benchmark their individual property or portfolio performance against market-wide metrics. By comparing property-specific occupancy rates, ADR, and RevPAR against market averages for similar property types, managers can assess relative performance and identify areas for improvement. These benchmarks provide crucial context for performance evaluation and goal setting.

Investment Decision Support: Real estate investors and portfolio managers can use market-level performance data to identify attractive investment opportunities across different geographic areas. The comprehensive market metrics reveal high-performing areas, emerging markets, and potential investment risks based on actual performance data rather than anecdotal evidence. This information supports data-driven acquisition strategies and portfolio diversification decisions.

Demand Forecasting and Planning: Revenue managers and property operators can leverage the historical performance patterns and forward-looking projections to anticipate demand fluctuations and plan accordingly. The seasonal patterns, booking pace indicators, and AI-enhanced forecasts enable proactive rate adjustments, marketing timing, and operational planning to maximize revenue opportunities during high-demand periods.

Market Entry Analysis: Companies considering entering new vacation rental markets can utilize this dataset to understand market dynamics, competitive intensity, and performance expectations before committing resources. The comprehensive market metrics reduce market entry risk by providing clear visibility into potential revenue opportunities, seasonal patterns, and overall market health.

Performance Attribution Analysis: Market analysts can use this dataset to understand the drivers behind performance variations across different markets and time periods. By analyzing how market composition, seasonality, and external factors influence overall performance, analysts can identify the underlying causes of performance trends and develop more accurate forecasting models.

Economic Impact Assessment: Economic development organizations and tourism authorities can leverage this dataset to quantify the economic contribution of the vacation rental sector. The market-wide revenue metrics, occupancy patterns, and supply growth indicators provide valuable inputs for economic impact studies and policy development related to the short-term rental industry.

--- ADDITIONAL DATASET INFORMATION --- Delivery Details: • Delivery Frequency: daily | weekly | monthly | quarterly | annually • Delivery Method: scheduled file loads • File Formats: csv | parquet • Large File Format: partitioned parquet • Delivery Channels: Google Cloud | Amazon S3 | Azure Blob • Data Refreshes: daily

Dataset Options: • Coverage: Global (most countries) • Historic Data: Available (2021 for most areas) • Future Looking Data: Available (Current date + 180-365 days) • Point-in-Time: Available (with weekly as of dates) • Aggregation and Filtering Options: • Area/Market ...