UK Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The UK Real Estate Market size is estimated at USD 732.24 billion in 2025, and is expected to reach USD 901.81 billion by 2030, at a CAGR of 4.25% during the forecast period (2025-2030).

Accelerated home-building targets, resilient institutional investment, and a stable legal framework sustain this growth even as interest-rate volatility lingers. Institutional inflows continue to favor logistics, build-to-rent, and mixed-use schemes, while e-commerce expansion boosts demand for warehouse space. Government planning reforms and brownfield incentives shorten project timelines, and technology adoption is improving planning efficiency. Tight supply in key regions supports price stability, but elevated construction costs and labor shortages keep margins under pressure.

UK Real Estate Market Trends and Insights

Strong Institutional Capital Inflows Transform Build-to-Rent Dynamics

Build-to-rent attracted USD 1.5 billion during Q2 2024, 77% of which targeted single-family housing. Nest, Legal & General, and PGGM committed USD 1.25 billion to net-zero schemes, adding scale to a pipeline of 115,000 completed homes. Median letting times fell to 24 days, signaling undersupply. Blackstone's USD 925 million partnership with Vistry confirms sustained appetite, especially in the south-east.

Government Planning Reforms Accelerate Housing Delivery Pipeline

The Levelling Up and Regeneration Act 2023 introduced commencement notices and longer enforcement periods, while a brownfield presumption could yield 11,500 London homes annually. More than 100 new-town proposals, each topping 10,000 dwellings, await approval, and National Development Management Policies aim to simplify infrastructure funding. Taylor Wimpey plans up to 10,000 completions in 2024, citing faster approvals.

Interest-Rate Volatility Constrains Mortgage Accessibility

The Bank of England base rate at 4.5% keeps two-year fixed mortgages near 5.0%, still above 2023 peaks. Buy-to-let lending is projected to shrink to USD 11.3 billion in 2025, and first-time buyers form only 27% of private sales. UK Finance, however, expects overall lending to reach USD 325 billion in 2025, signaling gradual recovery.

Other drivers and restraints analyzed in the detailed report include:

1. E-commerce Expansion Drives Logistics Real Estate Demand
2. Urban Regeneration Projects Redefine City-Center Value Propositions
3. Construction Cost Inflation Pressures Development Margins

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Residential accounted for a 79.5% share of the United Kingdom real estate market in 2024, underpinning overall growth. The segment benefits from a 4.81% forecast CAGR, propelled by a 1.5 million-home pledge and mandatory 370,000-unit annual targets. The United Kingdom real estate market size for residential assets is set to widen as apartments deliver density in urban cores while single-family homes attract families to commuter belts. Build-to-rent stock adds scale and offers investors stable yields.

Logistics leads commercial sub-sectors as e-commerce penetration rises, whereas offices face hybrid-work adjustments with secondary-grade space recording a 34.2% drop in take-up. Retail warehouses outperform high-street units with expected 8.9% returns in 2025, and industrial vacancy remains manageable at 7.6%. Developers such as Berkeley pivot toward rental assets, illustrating a capital pivot within the United Kingdom real estate industry.

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.

List of Companies Covered in this Report:

1. Barratt Redrow plc
2. Taylor Wimpey plc.
3. Persimmon plc.
4. Berkeley Group
5. The British Land Company PLC.
6. Land Securities Group PLC
7. SEGRO PLC
8. Derwent London PLC
9. Great Portland Estates PLC
10. Capital & Counties Properties PLC
11. Shaftesbury Capital PLC
12. Tritax Big Box REIT PLC
13. Unite Group PLC
14. Grainger PLC
15. Rightmove PLC
16. Countrywide PLC
17. Savills PLC
18. Knight Frank LLP
19. CBRE UK Ltd
20. JLL (Jones Lang LaSalle) UK

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support