United Kingdom Real Estate Report

Published 18 August 2015

  • 99 pages
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United Kingdom Real Estate Report

BMI View : Low commodity prices and inflation CPI of 0.0% in Q215 should sustain the robust economy in the UK over the remainder of 2015 and into 2016. The tertiary sector remains the strongest contributor, at 78% of GDP, a factor we expect to remain resilient, despite current external market volatility, as consumer spending and domestic demand drive retail and office opportunities over the forecast period.

Domestic demand is expected to remain strong: higher wages coupled with the temporary effects of low inflation have influenced consumer confidence in the short term, and should see sustained levels in the forecast period. We can attribute long-term economic stability to the rise of oil and energy production, which have raised the GDP 0.7% Q215 to a figure of 2.7% y-o-y, after a brief slowdown in Q115 attributed to the volatility in the external economic environment. Eurozone difficulties with Greece's bailout terms and continued sliding of the Chinese stock market is weighing in on investor confidence. Although, there remains uncertainty as a stronger pound becomes an issue for UK exporters, especially when trying to sell to the struggling EU. Concerning the effects to the wider commercial real estate industry up to the 2019 forecast period, we little effect on the growing industry as conditions remain favourable in the UK, such as reduced corporate tax policies, with particular opportunities in London amid the conservative majority victory in May 2015, inducing increased business sentiment.

Company focus is on London city, the most important in the region with a global financial centre and a population of over 8mn people. It is the most urbanised zone and biggest metropolitan region in the UK with a large concentration of tertiary sector businesses centred here. Although, further instability in the services sector from dwindling external markets and the 2008 financial crisis still bear scars, companies have looked for opportunities elsewhere. Increased...

BMI Industry View
Operational Risk
Industry Forecast
Office Industry Forecast
Table: Office Rental Rates
Table: Office Yields
Retail Industry Forecast
Table: Retail Rental Rates
Table: Retail Yields
Industrial Industry Forecast
Table: Industrial Rental Rates
Table: Industrial Yields
Residential/Non-Residential Construction - Outlook And Overview
Table: Residential and Non-Residential Building Industry Data (United Kingdom 2013-2018)
Table: Residential and Non-Residential Building Industry Data (United Kingdom 2019-2024)
Table: Major Projects - Residential/Non-Residential Construction & Social Infrastructure
Macroeconomic Forecasts
Economic Analysis
Real GDP By Expenditure
Table: GDP By Expenditure (United Kingdom 2012-2019)
Industry Risk Reward Ratings
Industry Risk Reward Index
Table: Developed States Real Estate Risk/Reward Index
Market Overview
Competitive Landscape
Property Developers
Property Managers
Demographic Forecast
Table: Population Headline Indicators (United Kingdom 1990-2025)
Table: Key Population Ratios (United Kingdom 1990-2025)
Table: Urban/Rural Population & Life Expectancy (United Kingdom 1990-2025)
Table: Population By Age Group (United Kingdom 1990-2025)
Table: Population By Age Group % (United Kingdom 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Real Estate Risk/Reward Index Indicators
Table: Weighting Of Indicators

The United Kingdom Real Estate Report features BMI Research's market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's United Kingdom Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in United Kingdom.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for United Kingdom to test other views - a key input for successful budgeting and strategic business planning in the British real estate market.
  • Target business opportunities and risks in United Kingdom through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our company profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 for the domestic real estate industry and for the local and global finance industry.

Indicators Include:

  • Real Estate: Office, retail and industrial real estate yields for all major cities (%); short term forecasts on minimum and maximum real estate rental prices by sub-sector (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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