UK Office Real Estate Market to Reach USD 80.65 Billion by 2030, Driven by Demand for Premium Spaces and Hybrid Work Models

Mordor Intelligence has published a new report on the UK Office Real Estate Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

UK Office Real Estate Market Overview

The United Kingdom's office real estate market is projected to grow from USD 69.05 billion in 2025 to USD 80.65 billion by 2030, reflecting a compound annual growth rate (CAGR) of 3.15%. This growth is underpinned by a steady recovery in demand for high-quality office spaces, despite the ongoing prevalence of hybrid working arrangements.

Report Overview: https://www.mordorintelligence.com/industry-reports/united-kingdom-office-real-estate-market?utm_source=openPR

Key Trends

1. Shift Towards Hybrid Work Models

Hybrid working has become a permanent feature of the UK workforce, with 28% of working adults adopting a hybrid schedule as of autumn 2024. This shift has led companies to reassess their office space requirements, focusing on quality and flexibility rather than quantity.

2. Increased Demand for Grade A Office Spaces

Grade A office buildings accounted for 65.2% of the market share in 2024 and are expected to grow at a CAGR of 3.40% through 2030. These premium spaces offer advanced amenities and sustainability features, attracting tenants seeking to enhance employee well-being and productivity.

3. Rise of 'Super-Prime' Office Developments

Developers are investing in 'super-prime' office spaces equipped with hotel-like amenities, such as private cinemas, spas, and dining areas, to entice employees back to the office. Notable projects include 40 Leadenhall in London, which has set new standards for luxury office environments.

4. Regional Growth Outside London

While London remains the dominant market, regions like Scotland are experiencing faster growth, with a projected CAGR of 4.20% through 2030. Cities such as Edinburgh and Glasgow are becoming increasingly attractive to businesses seeking cost-effective and flexible office solutions.

5. Sustainability and ESG Considerations

Environmental, Social, and Governance (ESG) factors are influencing tenant decisions, with a growing preference for office spaces that meet sustainability standards. This trend is prompting landlords to invest in energy-efficient buildings and retrofitting existing properties to meet these expectations.

Market Segmentation

By Building Grade: Grade A office spaces lead the market, accounting for 65.2% of the share in 2024, with a projected CAGR of 3.40% through 2030.

By Transaction Type: Rental transactions dominated the market with a 68.3% share in 2024, while sales transactions are expected to grow at a 3.60% CAGR through 2030.

By End Use: The Banking, Financial Services, and Insurance (BFSI) sector held 31.1% of the market share in 2024. The Information Technology (IT & ITES) sector is anticipated to expand at a 4.01% CAGR to 2030.

By Region: England captured 81.6% of the market in 2024, with Scotland projected to experience the fastest growth at a 4.20% CAGR through 2030.

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- https://www.mordorintelligence.com/ja/industry-reports/united-kingdom-office-real-estate-market?utm_source=openPR

Key Players

Several prominent companies are shaping the UK office real estate market:

British Land Company: A leading property development and investment company, known for its high-quality office spaces in prime locations.

Land Securities Group: One of the largest commercial property development and investment companies in the UK, focusing on sustainable and innovative office environments.

Workspace Group: Specializes in providing flexible office spaces for small and medium-sized enterprises, with a strong presence in London.

CBRE Group: A global real estate services firm offering a range of services, including property management, leasing, and investment advisory.

Savills plc: An international real estate services provider, offering services in agency, property management, and valuation.

These companies are adapting to market dynamics by focusing on sustainability, flexibility, and tenant-centric solutions.

Conclusion

The UK office real estate market is on a steady growth trajectory, driven by the demand for high-quality, flexible, and sustainable office spaces. While hybrid working models continue to influence tenant preferences, the emphasis on premium office environments is reshaping the market landscape. Developers and investors who prioritize sustainability, flexibility, and employee well-being are well-positioned to capitalize on the evolving market trends. As regional markets like Scotland gain momentum, opportunities for expansion and investment outside traditional hubs are becoming increasingly attractive. The future of the UK office real estate market lies in its ability to adapt to changing work patterns and tenant expectations, ensuring that office spaces remain relevant and desirable in a post-pandemic world.

Industry Related Reports

Office Real Estate Market: The Market is segmented by building grade, including Grade A, Grade B, and others. It is further categorized by transaction type (Rental and Sales), end use (Information Technology (IT & ITES), BFSI (Banking, Financial Services, and Insurance), and more), and geography (Asia-Pacific, North America, Europe, and other regions).

To know more visit this link: https://www.mordorintelligence.com/industry-reports/office-real-estate-market?utm_source=openPR

US Office Real Estate Market: The market is segmented by building grade, including Grade A, Grade B, and others. It is further divided by transaction type (Rental and Sales), end use (Information Technology (IT & ITES), BFSI (Banking, Financial Services, and Insurance), and more), and states, such as Texas, California, Florida, and others.

To know more visit this link: https://www.mordorintelligence.com/industry-reports/united-states-office-real-estate-market?utm_source=openPR

Canada Office Real Estate Market: The market is segmented by building grade, including Grade A, Grade B, and others. It is further categorized by transaction type (Rental and Sales), end use (Information Technology (IT & ITES), BFSI (Banking, Financial Services, and Insurance), and more), and province, such as Ontario, Quebec, Alberta, and others.

To know more visit this link: https://www.mordorintelligence.com/industry-reports/canada-america-office-real-estate-market?utm_source=openPR

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This release was published on openPR.