United Kingdom Real Estate Market Insights Forecasts to 2033

• The UK Real Estate Market Size was valued at USD 340.67 Billion in 2023.
• The Market is growing at a CAGR of 5.74% from 2023 to 2033
• The U.K. Real Estate Market Size is expected to Reach USD 595.27 Billion by 2033

The United Kingdom Real Estate Market is Anticipated to Exceed USD 595.27 Billion by 2033, growing at a CAGR of 5.74% from 2023 to 2033.

Market Overview

Real estate plays a major role in the economy of the UK, and is governed by the laws of Scotland and England concerning land. The real estate sector in the UK is either the biggest or second biggest in Europe, depending on how it is measured. The UK's commercial real estate market is valued at approximately 250 billion euros. Residential property was the biggest non-financial asset in the U.K. Foreign investment plays a significant role in the real estate market of the UK, especially in London. The real estate sector is a complex market that includes buying, building, and overseeing both residential and commercial properties. This wide-ranging industry comprises of housing for individuals and families, as well as properties used for businesses and manufacturing. Real estate development is about building and improving properties, while real estate investment focuses on buying properties for profit. A significant number of office workers have begun to work from their homes. Consequently, numerous companies have been forced to reconsider their office structures and adopt hybrid work. During 2023, there was a rise in empty office spaces in most city centers in the UK in comparison to before the pandemic. Residential property plays a key role in driving the growth of the real estate market in the UK by offering a pleasant living space, steady investment opportunity, and a feeling of connection within society.

Report Coverage

This research report categorizes the market for the U.K. real estate market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the UK real estate market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the U.K. real estate market.

Driving Factors

The state of the economy is crucial in influencing the real estate market. Variables like interest rates, job market, and general economic conditions play a major role in affecting the demand for residential and commercial real estate. Low interest rates usually encourage people to buy homes by making mortgage payments cheaper, boosting demand, and pushing up property prices. Demographic factors such as population growth, age distribution, and urbanization play a key role in influencing the real estate market. Changes in population distribution from countryside to cities impact the need for housing and the growth of business areas. Technological advancements are completely transforming the real estate sector, changing how properties are advertised, bought, and maintained.

Restraining Factors

The residential real estate market in the U.K. has experienced minimal growth due to major cities reaching their limits for expansion, thus impeding market growth

Market Segmentation

The United Kingdom real estate market share is classified into property and end user.

• The residential segment is expected to hold the largest market share through the forecast period.   

The UK real estate market is segmented by property into residential, commercial, industrial, and land. Among these, the residential segment is expected to hold the largest market share through the forecast period. The increase is largely fueled by millennials as they show a stronger preference for owning their own homes in recent times. In accordance with apartment list’s homeownership report, the rate of millennials owning homes has risen.

• The rental segment dominates the market with the largest market share over the predicted period.

The United Kingdom real estate market is segmented by type into sales, rental, and lease. Among these, the rental segment dominates the market with the largest market share over the predicted period. The increase in the number of renters is due to the increasing home prices in developed countries, leading to growth in the rental market segment.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the U.K. real estate market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Berkeley Group Holdings PLC
• British Land
• Bridgewater Housing Association Ltd
• Capital & Counties Properties PLC
• Derwent London
• Hammerson
• Home REIT
• Rightmove
• Sanctuary Housing Association
• Shaftesbury PLC

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-added resellers (VARs)

Recent Developments

• In January 2023, Sotheby's Dubai branch has purchased the property business of Sotheby's in the U.K. Robin Paterson previously owned UK Sotheby International Realty before selling the business to his business partner and affiliate, George Azar. George Azar is currently in charge of managing Sotheby's Dubai and the MENA region.

Market Segment

This study forecasts revenue at the U.K., regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom Real Estate Market based on the below-mentioned segments:

United Kingdom Real Estate Market, By Property

• Residential
• Commercial
• Industrial
• Land

United Kingdom Real Estate Market, By Type

• Sales
• Rental
• Lease