UK Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

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.

UK Real Estate Market Size and Share

UK Real Estate Market (2025 - 2030)
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UK Real Estate Market Analysis by Mordor Intelligence

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[1]Department for Levelling Up, Housing and Communities, “Brownfield Land Release Fund 2,” GOV.UK, gov.uk.

Key Report Takeaways

  • By property type, residential led with 79.5% revenue share of the United Kingdom real estate market in 2024; logistics is projected to post the fastest 4.81% CAGR through 2030.
  • By business model, the sales segment held 65.2% share of the United Kingdom real estate market size in 2024, while rentals are expected to expand at a 4.93% CAGR during 2025-2030.
  • By end-user, individuals and households accounted for 58.2% of the United Kingdom real estate market share in 2024, and this segment is forecast to grow at the fastest 5.07% CAGR to 2030.
  • By geography, England dominated with 71.2% revenue share in 2024; Scotland is set to record the highest 5.35% CAGR between 2025-2030.

Segment Analysis

By Property Type: Residential Dominance Drives Market Expansion

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.

UK Real Estate Market: Market Share by Property Type
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By Business Model: Sales Transactions Lead Despite Rental Growth

Sales transactions held 65.2% of the United Kingdom real estate market share in 2024 and carry the highest 4.93% CAGR outlook as mortgage accessibility improves. Barratt’s 36.7% lift in reservation rates after integrating Redrow signals rising consumer confidence. Government incentives for first-time buyers and a cultural bias toward ownership sustain demand.

Rental transactions continue to institutionalize through large-scale build-to-rent vehicles. Regulatory changes, such as the forthcoming Renters’ Rights Bill, favor professional landlords by adding tenant protections. The United Kingdom real estate market size attributed to rentals should expand as global investors form joint ventures exceeding USD 875 million to acquire multi-let industrial and residential assets[3]UK Finance, “Mortgage Market Forecasts 2025,” UK Finance, ukfinance.org.uk.

By End-user: Individual Households Drive Demand Fundamentals

Individuals and households comprised 58.2% of the market in 2024 and are forecast to grow at a 5.07% CAGR, the fastest among end-users. Lower fixed-rate mortgages and a 1.3 million-household social-housing waiting list intensify demand. The United Kingdom real estate market continues to draw younger families, reinforcing steady absorption in both for-sale and for-rent segments.

Corporate occupiers temper office demand but boost logistics take-up amid supply-chain re-design. Government and institutional actors shape pipeline direction through planning policies and land disposals. International buyers, including Norway’s sovereign fund, invested USD 0.71 billion for a Covent Garden stake, showing a long-term commitment to prime assets.

UK Real Estate Market: Market Share by End-User
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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

England generated 71.2% of 2024 revenue, equal to roughly USD 500.1 billion of United Kingdom real estate market size. London anchors international capital inflows, yet a sharp supply imbalance—8,450 housing starts against an 80,000-unit target—tightens affordability. Brownfield policies aim to add 11,500 London homes each year, while Birmingham’s USD 2.38 billion Smithfield and Manchester’s tower pipeline reflect growth outside the capital. Retail returns in key English cities outpace offices, which adapt to hybrid occupancy.

Scotland is the fastest-growing geography with a projected 5.35% CAGR to 2030. Positive price expectations returned in early 2025, and rental demand exceeds supply, driving rent inflation. Lower price-to-earnings ratios relative to England appeal to both domestic and foreign investors. Institutional funds target build-to-rent in Glasgow and Edinburgh, leveraging favorable land pricing and supportive planning frameworks[4]Royal Institution of Chartered Surveyors, “UK Residential Market Survey: April 2025,” RICS, rics.org.

Wales and Northern Ireland contribute smaller shares but benefit from regeneration initiatives and unique cross-border dynamics. Proximity to English economic hubs supports Welsh residential builds, while Northern Ireland leverages distinct legal frameworks to attract logistics investors. Both regions stand to gain from national housing targets and infrastructure spending, broadening the footprint of the United Kingdom real estate market.

Competitive Landscape

The UK real estate market is moderately concentrated. Barratt’s USD 3.13 billion acquisition of Redrow creates capacity for 23,000 annual units and demonstrates scale-seeking behavior. The Competition and Markets Authority examines information-sharing among builders, but current evidence points to intense rivalry rather than dominance. Developers with faster planning expertise and balance-sheet strength capture market share in the United Kingdom real estate market.

Strategic pivots focus on asset-light rental models and technology. Berkeley’s “2035” plan earmarks free cash flow for rental platforms, and Persimmon aligns new-build designs with planning reforms. AI solutions such as JLL’s “Hank” optimize energy use, while the government’s “Extract” tool is set to digitize planning documents by 2026, reducing approval cycles. Data-driven efficiencies create competitive advantage across the United Kingdom real estate industry.

International capital deepens competition. Blackstone added USD 250 million of last-mile warehouses and partners with domestic builders for build-to-rent delivery. Legal & General exited CALA for USD 1.69 billion to refocus on core annuity-backed real-estate strategies, and SEGRO’s USD 0.69 billion bid for Tritax EuroBox strengthens its pan-European logistics network. Players that blend domestic insight with global funding secure a foothold in high-growth niches of the United Kingdom real estate market.

UK Real Estate Industry Leaders

  1. Barratt Redrow plc

  2. Taylor Wimpey plc.

  3. Persimmon plc.

  4. Berkeley Group

  5. The British Land Company PLC.

  6. *Disclaimer: Major Players sorted in no particular order
UK Real Estate Services Market Concentration
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Recent Industry Developments

  • June 2025: Australia’s Macquarie Group acquired stakes in several UK airports, signaling confidence in transportation-linked real estate.
  • June 2025: The government launched the “Extract” AI tool to digitize planning documents, with nationwide rollout by Spring 2026 Prime Minister's Office.
  • March 2025: Norway’s sovereign wealth fund invested USD 0.71 billion for a 25% interest in Covent Garden, valuing the asset at USD 3.38 billion.
  • March 2025: The Commonhold White Paper positioned commonhold as the default tenure for new flats, with draft legislation expected in 2025 Ministry of Housing, Communities & Local Government.

Table of Contents for UK Real Estate Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Insights and Dynamics

  • 4.1 Market Overview
  • 4.2 Commercial Real Estate Buying Trends – Socio-economic & Demographic Insights
  • 4.3 Rental Yield Analysis
  • 4.4 Capital-Market Penetration & REIT Presence
  • 4.5 Regulatory Outlook
  • 4.6 Technological Outlook
  • 4.7 Insights into Real Estate Tech and Startups Active in the Real Estate Segment
  • 4.8 Insights into Existing and Upcoming Projects
  • 4.9 Market Drivers
    • 4.9.1 Strong institutional capital inflows into logistics, build-to-rent, and life sciences sectors
    • 4.9.2 Government-led housing initiatives and planning reforms boosting residential supply
    • 4.9.3 Growth of e-commerce and nearshoring fueling industrial and warehouse demand
    • 4.9.4 Urban regeneration and mixed-use developments revitalizing city centers
    • 4.9.5 Sustainability and ESG mandates driving investment into green-certified assets across asset classes
    • 4.9.6 Stable legal and financial frameworks reinforcing the UK’s appeal as a global investment destination
  • 4.10 Market Restraints
    • 4.10.1 Rising interest rates and borrowing costs affecting residential affordability and project financing
    • 4.10.2 Planning delays and regulatory hurdles slowing down development pipelines
    • 4.10.3 Construction inflation and material shortages increasing project delivery risks
    • 4.10.4 Post-Brexit labor and policy uncertainty impacting investor confidence and market sentiment
  • 4.11 Value / Supply-Chain Analysis
    • 4.11.1 Overview
    • 4.11.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights
    • 4.11.3 Real Estate Brokers and Agents - Key Quantitative and Qualitative Insights
    • 4.11.4 Property Management Companies - Key Quantitative and Qualitative Insights
    • 4.11.5 Insights on Valuation Advisory and Other Real Estate Services
    • 4.11.6 State of the Building Materials Industry and Partnerships with Key Developers
    • 4.11.7 Insights on Key Strategic Real Estate Investors/Buyers in the Market
  • 4.12 Porter’s Five Forces
    • 4.12.1 Threat of New Entrants
    • 4.12.2 Bargaining Power of Buyers/Occupiers
    • 4.12.3 Bargaining Power of Suppliers (Developers/Builders)
    • 4.12.4 Threat of Substitutes
    • 4.12.5 Competitive Rivalry Intensity

5. Market Size & Growth Forecasts (Value in USD)

  • 5.1 By Property Type
    • 5.1.1 Residential
    • 5.1.1.1 Apartments & Condominiums
    • 5.1.1.2 Villas & Landed Houses
    • 5.1.2 Commercial
    • 5.1.2.1 Office
    • 5.1.2.2 Retail
    • 5.1.2.3 Logistics
    • 5.1.2.4 Others (industrial real estate, hospitality real estate, etc.)
  • 5.2 By Business Model
    • 5.2.1 Sales
    • 5.2.2 Rental
  • 5.3 By End-user
    • 5.3.1 Individuals / Households
    • 5.3.2 Corporates & SMEs
    • 5.3.3 Others
  • 5.4 By Country
    • 5.4.1 England
    • 5.4.1.1 London
    • 5.4.1.2 Rest of England
    • 5.4.2 Scotland
    • 5.4.3 Wales
    • 5.4.4 Northern Ireland

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products & Services, and Recent Developments)
    • 6.3.1 Barratt Redrow plc
    • 6.3.2 Taylor Wimpey plc.
    • 6.3.3 Persimmon plc.
    • 6.3.4 Berkeley Group
    • 6.3.5 The British Land Company PLC.
    • 6.3.6 Land Securities Group PLC
    • 6.3.7 SEGRO PLC
    • 6.3.8 Derwent London PLC
    • 6.3.9 Great Portland Estates PLC
    • 6.3.10 Capital & Counties Properties PLC
    • 6.3.11 Shaftesbury Capital PLC
    • 6.3.12 Tritax Big Box REIT PLC
    • 6.3.13 Unite Group PLC
    • 6.3.14 Grainger PLC
    • 6.3.15 Rightmove PLC
    • 6.3.16 Countrywide PLC
    • 6.3.17 Savills PLC
    • 6.3.18 Knight Frank LLP
    • 6.3.19 CBRE UK Ltd
    • 6.3.20 JLL (Jones Lang LaSalle) UK

7. Market Opportunities & Future Outlook

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UK Real Estate Market Report Scope

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.

By Property Type Residential Apartments & Condominiums
Villas & Landed Houses
Commercial Office
Retail
Logistics
Others (industrial real estate, hospitality real estate, etc.)
By Business Model Sales
Rental
By End-user Individuals / Households
Corporates & SMEs
Others
By Country England London
Rest of England
Scotland
Wales
Northern Ireland
By Property Type
Residential Apartments & Condominiums
Villas & Landed Houses
Commercial Office
Retail
Logistics
Others (industrial real estate, hospitality real estate, etc.)
By Business Model
Sales
Rental
By End-user
Individuals / Households
Corporates & SMEs
Others
By Country
England London
Rest of England
Scotland
Wales
Northern Ireland
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Key Questions Answered in the Report

What is the current value of the United Kingdom real estate market?

The market is valued at USD 732.24 billion in 2025 and is projected to reach USD 901.81 billion by 2030.

Which property type holds the largest share?

Residential assets account for 79.5% of market revenue in 2024, making them the dominant property type.

Why is Scotland the fastest-growing region?

Scotland offers lower price-to-earnings ratios, improving affordability, and has a forecast 5.35% CAGR through 2030, attracting both domestic and foreign investors.

How are planning reforms impacting supply?

Mandatory commencement notices, brownfield presumption, and new-town initiatives aim to streamline approvals and add significant residential capacity nationwide.

What role does institutional capital play in rentals?

Build-to-rent projects secured USD 1.5 billion in Q2 2024, indicating strong appetite for professionally managed rental housing and stable long-term yields.

How is technology influencing the sector?

AI tools such as the government’s “Extract” solution and JLL’s “Hank” enhance planning efficiency and building energy performance, providing competitive advantages to early adopters.

Page last updated on: July 10, 2025

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