The view from the UK
Every year we ask a cross-section of leading UK real estate professionals for their views on the market.
This year we polled 270 experts, including 62 investors and 54 developers. In many ways they share the outlook of the global investors we surveyed, with long-term confidence tempered by short-term concerns.
Overall, 38% reported feeling optimistic about the market, while 34% describe themselves as neutral and 28% are pessimistic.
Although positive, this take on the market is unsurprisingly more cautious than the one we found 12 months ago, with sentiment falling back to levels last seen at the beginning of the pandemic as the more bullish outlook of the past two years recedes.
How optimistic or pessimistic do you feel about the UK real estate market in the short term?
More than 70% of those we polled expect the UK investment market to recover to its last peak by the end of 2026. A similar number (73%) believe the current correction in values is a good buy opportunity.
When will the UK real estate market recover to its 2019 peak?
The current correction: What do UK investors think?
But as the chart below shows, most also continue to have concerns about inflation, higher interest rates, the cost of living and the instability of global banks.
Headwinds: What do UK professionals think?
Our finding that 87% of UK professionals think the last few years of fluctuating, politically-driven reform proposals have had a negative effect on the industry is a reminder of the impact that turbulence in Westminster can have on the UK’s real estate market.
In a similar vein, most global investors (80%) say that the UK’s recent political dramas have made them reconsider investment in UK property. Over three-quarters (77%) believe Brexit has disincentivised international investment into UK property (as do 73% of UK professionals).
Global investors: Do you agree or disagree that the UK political changes of the past year have made you reconsider investment in UK property?
