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Mixed sentiment abound
The late Budget put pay to a sharp increase in activity during the final month of the year. For more information on the Budget, we cover that in the Economy and Housing Marketbeat.
As we go into the new year, we see sectoral interest still relatively diverse:
Across central London offices, while volumes remain muted, there have been a number of larger deals transact during the last few weeks, with a significant amount under offer. We have seen a noted uptick in institutional activity, and North American and German private buyers. Regional offices nevertheless remain subdued, with an increase in North American capital and UK institutional interest for core opportunities. This marks a step change.
Liquidity remains strong across all retail sub sectors including leisure, with core investors active, despite a final-quarter slow down in the out-of-town market.
Industrial interest remains steady, with a number of larger deals expected to close before year-end across a wide range of buyers.
Value-add capital remains active across the PBSA market, particularly for older stock needing capex or operational resets. A number of the larger portfolio transactions are taking longer to complete and may fall into early 2026.
Hotels has seen a quieter Q4, but 2025 should be in line with the ten-year average, with a significant amount of stock on the market.
The star performer of the year in terms of volumes has been the Healthcare sector, which prior to year-end had already seen investment of c.£10 billion, excluding hospitals and primary care. Most of this activity has been driven by US REITS.
