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UK Real Estate Market Size (2024 - 2029)

The UK real estate market is experiencing shifts in its market size due to changes in work patterns and economic conditions. The rise of hybrid work has led to increased office space vacancies, prompting companies to reevaluate their office models. Economic growth is projected to be slow, which may impact consumer confidence and house prices. Despite historical volatility, the market has shown long-term stability, although higher borrowing costs from increased interest rates are currently exerting downward pressure on house prices.

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Market Size of UK Real Estate Industry

UK Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 32.45 Billion
Market Size (2029) USD 44.73 Billion
CAGR (2024 - 2029) 3.00 %
Market Concentration Low

Major Players

UK Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

UK Real Estate Market Analysis

The UK Real Estate Market size is estimated at USD 32.45 billion in 2024, and is expected to reach USD 44.73 billion by 2029, growing at a CAGR of 3% during the forecast period (2024-2029).

The UK real estate market is undergoing significant changes, driven by economic dynamics, policy shifts, and evolving consumer preferences. As housing demand surges, especially in regions beyond London, builders are intensifying their construction activities. There's a pronounced push for affordable housing in suburban locales, prompting major developers to extend their operations beyond the capital. Concurrently, the commercial real estate arena is gravitating towards sustainability, with firms increasingly favoring eco-friendly office spaces to cater to the rising demand for green buildings. These trends are redefining both the residential and commercial property landscapes in the UK.

Highlighting this transformation, Taylor Wimpey has upped its 2024 housing completion targets, anticipating a notable uptick in homebuilding, especially in suburban and regional locales. This adjustment is spurred by favorable national planning reforms and a hopeful outlook on declining interest rates, bolstering confidence in housing growth outside London. On the commercial front, British Land is pivoting towards sustainable office spaces, directly addressing tenant demands for green, energy-efficient buildings and the sector's responsibility to align with the UK's ambitious climate goals.

In the luxury segment, demand remains strong in locales like Mayfair and Knightsbridge, driven by high-net-worth individuals. Mace’s EUR 2 billion (USD 2.1 billion) luxury project in Mayfair, with properties starting at EUR 35 million (USD 36.77 million), underscores the segment's resilience. This market continues to allure both domestic and international buyers, highlighting the lasting allure of prime central London real estate. The rising demand for luxury homes, alongside heightened sustainability efforts in both residential and commercial sectors, paints a vibrant picture of the 2024 real estate landscape.

UK Real Estate Industry Segmentation

Real estate services mean providing a service concerning the purchase, sale, lease, rental, or appraisal of real property.

The report provides a comprehensive background analysis of the United Kingdom real estate services market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study.

The UK real estate services market is segmented by property type (residential, commercial, and other property types) and service (property management, valuation services, and other services). The report offers market size and forecasts in value (USD) for all the above segments.

Property type
Residential
Commercial
Other Property Types
Service
Property Management
Valuation
Other Services
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UK Real Estate Market Size Summary

The UK real estate market is experiencing a period of transformation, influenced by shifts in work patterns and economic conditions. The rise of hybrid work models has led to increased office space vacancies in urban centers, prompting companies to reevaluate their office needs. Despite these challenges, the market remains relatively stable, with house prices generally trending upward over the long term, although they are subject to volatility during economic downturns or housing bubbles. The market is also impacted by factors such as interest rates, which have been on the rise, leading to higher borrowing costs and potentially dampening house prices. The supply-demand dynamics play a crucial role, with a lack of housing supply driving up prices, particularly in competitive areas like London, where average house prices are significantly higher than the national average.

The UK real estate services sector is characterized by a fragmented landscape with both international and local players, including prominent firms like Knight Frank, Savills Ltd, and regional entities such as Atalian Servest Ltd and Notting Hill Genesis. The market is currently facing a slowdown in transactions due to rising mortgage rates and a cost of living crisis, which has curtailed the previous trend of significant price growth. However, there is a growing demand for residential and rental properties, driven by increased remote work and a desire for larger homes, especially in suburban areas. The shortage of quality rental homes has attracted investor interest in purpose-built rental properties, particularly in city centers, as the market adapts to evolving living and working preferences.

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UK Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic Scenario

    2. 1.2 Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 1.3 Government Initiatives and Regulatory Aspects for Real Estate Sector

    4. 1.4 Insights into Existing and Upcoming Projects

    5. 1.5 Insight into Interest Rate Regime for General Economy and Real Estate Lending

    6. 1.6 Insights into Capital Market Penetration and REIT Presence in Real Estate

    7. 1.7 Insights into Rental Yields in Real Estate Segment

    8. 1.8 Insights into Public-Private Partnerships in Real Estate

    9. 1.9 Insights into Real Estate Tech and Startups Active in Real Estate Segment (Brokerage, Social Media, Facility Management, and Property Management)

    10. 1.10 Impact of Geopolitics and Pandemic on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Property type

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Other Property Types

    2. 2.2 Service

      1. 2.2.1 Property Management

      2. 2.2.2 Valuation

      3. 2.2.3 Other Services

UK Real Estate Market Size FAQs

The UK Real Estate Market size is expected to reach USD 32.45 billion in 2024 and grow at a CAGR of 3% to reach USD 44.73 billion by 2029.

In 2024, the UK Real Estate Market size is expected to reach USD 32.45 billion.

UK Real Estate Market Report Snapshots

UK Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)