United Kingdom Office Real Estate Market Size

UK Office Real Estate Market Analysis

The Office Real Estate Market in the United Kingdom is expected to register a CAGR of more than 6% during the forecast period.

• The recent improvement in economic data and the subsequent reopening of the economy have improved the outlook for the office real estate sector.Leasing momentum is back as most offices are safely implementing return-to-work. Inquiries have picked up around city centers, and so has the leasing activity. The IT and ITeS sectors are among the prime drivers of overall leasing activity in the top cities, and bulk hiring by these firms will influence demand for large, quality office spaces.
• COVID-19 had a mixed impact on the office real estate market in the United Kingdom, including its services. Real estate was badly hit by the COVID-19 pandemic, with a sharp decline in values across all markets and sectors. The office real estate take-up was below normal due to the flexibility given to employees (working from home) by the companies. The lockdown measures have forced millions of people to work from home, and on the other hand, the short-term nature of contracts has left offices with very low occupancy across the United Kingdom.
• The uncertainty surrounding Brexit had already eroded confidence in the United Kingdom office property market. Although Brexit has been sharply put into perspective, leaving the European Union has not helped the United Kingdom address severe labor and material shortages as well as crippling supply chain issues. Since the pandemic began, occupants, for example, have been increasingly renewing their office spaces. Occupants are looking to be in new-generation offices with modern amenities and a focus on health and wellness.