UK Real Estate Services Market Size
| 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 |
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*Disclaimer: Major Players sorted in no particular order |
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UK Real Estate Services 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).
A large proportion of office workers have started working from home. As a result, many companies have had to rethink their office models and embrace hybrid work. In 2023, there was an increase in office space vacancies across the majority of UK city centers compared to the pre-pandemic period.
The UK economy is projected to grow at a slower rate in 2023 than it did in 2022. A weak economy could result in fewer jobs and lower consumer confidence, which could hurt house prices. According to the International Monetary Fund, the UK economy is expected to grow at a 0.3% annual rate in 2023 before expanding by 1% in the following year.
The UK real estate market has gone through many cycles of boom and bust. Over the years, it has been a relatively stable market for homeowners and investors. House prices tend to increase over a long period. However, there has also been a lot of volatility in the market, with prices falling off a cliff during an economic recession or a housing bubble.
Interest rates have been repeatedly increased by the Bank of England in 2022, and the market expects small increases in 2023. Higher borrowing costs push down house prices. The BoE has reported that variable mortgage rates have almost doubled over the past year.
UK Real Estate Services Market Trends
Increasing in the United Kingdom House Prices
Several factors influence average house prices. A lack of supply means that demand for housing and, as a result, a competitive market will drive up house prices. On the other hand, an oversupply means that prices will fall to encourage buyers. The following factors influence average house prices: Economic growth, unemployment, interest rates, and mortgage availability.
A lack of supply means the demand for housing and, therefore, a competitive market will push house prices up, whereas an oversupply means prices will fall to encourage buyers. This is certainly the case when it comes to average house prices across the UK. In June 2022, London had an average house price that was about twice as high as the national average, at GBP 539,000 (USD 6488021). The capital of England also has the UK’s highest average house price.
Within London, house prices varied wildly. The average house would cost more than GBP 1 million (USD 1.20 Million) to live in the borough of Kensington. On the other hand, a property in the outer borough of Barking would cost around a quarter of the average house in the borough of Chelsea. In 2022, UK housing transactions reached an all-time high of 1.3m. As the number of transactions increases, so will the UK average house price.
Rise in Population is driving the market
In the period from 2010/11 to 2019/20, the number of new homes in England increased by 1.819,200, meaning a growth rate of 8.0%. Over the same period, the population of England increased by 4.090,600, meaning that for every new house built, the population increased by 2.25 people.
GDP per capita in the United Kingdom in 2022 was GBP 32,904 (about USD 40,936.27), which is an increase of GBP 1,090 (about USD 13,788.48) compared to 2021. People are looking for bigger homes in the UK, especially in suburban areas.
The proportion of new homes per head of population varies across the country. In the northeast, where there has been slower population growth, there were 1.3 new homes built for every new person. In the capital, where housing supply lags behind demand, the ratio was 3.4 homes per new home. Due to COVID-19 and the Ukraine War, more and more people are working from home, so the demand for residential as well as rental property is growing in the country.
UK Real Estate Services Industry Overview
The UK real estate services market is fragmented in nature due to the presence of both international and local players. Some of the prominent players in the industry are Knight Frank, Savills Ltd, Interserve, and regional players like Atalian Servest Ltd, Notting Hill Genesis, etc. Mortgage rates have been on the rise for the past year, and coupled with the current cost of living crisis, many people have stayed away from the property market, resulting in fewer transactions and an end to a two-year cycle of 20% price growth.
UK Real Estate Services Market Leaders
SEGRO plc
Land Securities Group plc
British Land Company plc
JLL
United Kingdom Sotheby's International Realty
*Disclaimer: Major Players sorted in no particular order
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UK Real Estate Services Market News
- January 2023: United Kingdom Sotheby's Property Business Acquired by the Dubai Branch of Sotheby's. UK Sotheby International Realty was previously owned by Robin Paterson, who sold the business to his business partner and affiliate, George Azar. George Azar currently holds and operates Sotheby's Dubai and the MENA region.
- November 2022: JLL identified a shortage of quality rental homes as a long-term problem for the UK, which the recent boom in rentals has accentuated. This unmet need for quality rental homes has led to continued investor interest in purpose-built rental properties in UK city centers. JLL reported that annual investment in UK living real estate reached £10bn (USD 12.73 bn) in Q3 2022, setting living on track for another record year.
UK Real Estate ServicesMarket Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic Scenario
4.2 Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects for Real Estate Sector
4.4 Insights into Existing and Upcoming Projects
4.5 Insight into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Capital Market Penetration and REIT Presence in Real Estate
4.7 Insights into Rental Yields in Real Estate Segment
4.8 Insights into Public-Private Partnerships in Real Estate
4.9 Insights into Real Estate Tech and Startups Active in Real Estate Segment (Brokerage, Social Media, Facility Management, and Property Management)
4.10 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Overview
5.2 Market Drivers
5.2.1 Improvements in Infrastructure and New Development
5.2.2 Population Growth and Demographic Changes
5.3 Market Restraints
5.3.1 Housing Shortages
5.3.2 Increasing Awareness towards Environmental Issues
5.4 Market Opportunities
5.4.1 Technological Advancements
5.5 Porter's Five Forces Analysis
5.5.1 Threat of New Entrants
5.5.2 Bargaining Power of Buyers/Consumers
5.5.3 Bargaining Power of Suppliers
5.5.4 Threat of Substitute Products
5.5.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 Property type
6.1.1 Residential
6.1.2 Commercial
6.1.3 Other Property Types
6.2 Service
6.2.1 Property Management
6.2.2 Valuation
6.2.3 Other Services
7. COMPETITIVE LANDSCAPE
8. Overview
9. Company Profiles
9.1 Hammerson
9.2 Derwent London
9.3 Bridgewater Housing Association Ltd
9.4 Sanctuary Housing Association
9.5 Capital & Counties Properties PLC
9.6 British Land
9.7 Berkeley Group Holdings PLC
9.8 Home REIT
9.9 Rightmove
9.10 Shaftesbury PLC
9.11 Tritax Big Box Reit PLC
9.12 Unite Group PLC
9.13 Wayhome*
- *List Not Exhaustive
10. *List Not Exhaustive
11. MARKET OPPORTUNITIES AND FUTURE TRENDS
UK Real Estate Services 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 |
UK Real Estate ServicesMarket Research FAQs
How big is the UK Real Estate Market?
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.
What is the current UK Real Estate Market size?
In 2024, the UK Real Estate Market size is expected to reach USD 32.45 billion.
Who are the key players in UK Real Estate Market?
SEGRO plc, Land Securities Group plc, British Land Company plc, JLL and United Kingdom Sotheby's International Realty are the major companies operating in the UK Real Estate Market.
What years does this UK Real Estate Market cover, and what was the market size in 2023?
In 2023, the UK Real Estate Market size was estimated at USD 31.5 billion. The report covers the UK Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UK Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK Real Estate ServicesIndustry Report
Statistics for the 2024 UK Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Real Estate analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
