Insights

The UK commercial property market showed mixed signals in Q2 2025. London’s data centre demand soared, retail investment rebounded sharply, and Central London’s office and industrial sectors outperformed. Investors remain optimistic despite broader market stagnation. 

The commercial property market saw lower turnover but bigger deal sizes in early 2025. Outlook for H2 is strong with potential rate cuts boosting investor confidence, though London’s construction pipeline faces challenges despite some support from government-backed projects. 

The City of London is showing renewed investment confidence, with activity well above 2024 levels. Buying has become more appealing than renting, driving owner-occupier growth. In Scotland, hotel assets outperformed despite an overall dip in commercial investment volumes.