United Kingdom Office Real Estate Market Report and Forecast 2025-2034

United Kingdom Office Real Estate Market Outlook

The United Kingdom office real estate market size is projected to grow at a CAGR of 5.20% between 2024 and 2032.

Key Takeaways

• The real estate sector of UK employs more than 12 million people and contributes a substantial amount of EUR 1.7 billion to the UK’s GDP.

• Demand for prime office space is increasing across big five cities of UK and Central London.

• According to data by Cushman & Wakefield, in Q4 of 2023, additional 4.2 million square feet of office space were leased across Central London and the big five cities (Birmingham, Bristol, Edinburgh, Leeds, and Manchester).

The United Kingdom office real estate market growth is driven by factors such as the expansion of the service sector in the country, the development of urban areas, the emergence of flexible and co-working spaces, and the increased adoption of technology and innovation in workplaces. For instance, integration of IoT-enabled systems, digital biometrics, and integrated communication software within office spaces of the region has led to market development.

A notable market trend is customisation of office designs that prioritise employee well-being. Companies like Knight Frank UK and Workspace Group are prioritising elements such as natural light, ergonomic furniture, and dedicated spaces for relaxation after recognising the impact of a healthy environment on employee well-being and overall productivity. Also, the region is witnessing a development of suburban offices due to the rise of suburban working culture and the increasing appeal of suburban living. To meet this demand, businesses are exploring office spaces outside city centres to provide employees with proximity to residential areas, which can propel the United Kingdom office real estate market growth.

Furthermore, the availability of flexible or shorter leases, including coworking spaces and serviced offices, also promotes market development because it is appealing to startups, freelancers, and businesses requiring agile and short-term solutions, as it allows them to adjust their office space in response to changing needs. The market can also be segmented based on IT, manufacturing, BFSI, and consulting sectors, where the IT sector has significantly contributed to the growing United Kingdom office real estate market share due to its high demand for offices that are well equipped with advanced technology devices, secure communication applications, and high-speed (5G) internet, which helps the IT companies in their work operations.

Market Segmentation

United Kingdom Office Real Estate Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Competitive Landscape

Market players are providing office spaces with customised and smart features to cater to evolving industry landscape.

• Savills plc

• CBRE, Inc.

• Colliers International Property Consultants, Inc.

• Knight Frank Group

• Workspace Group PLC

• CSB Business Advisory Services Limited

• Land Commercial Surveyors

• Fora Space Limited

• Others

Key Highlights of the Report