Savills predicts strong UK office & industrial investment in 2025

Savills has expressed confidence that the combined investment volume for the UK office and industrial property sectors in 2025 will surpass the approximately £20.7 bn (€23.81 bn) total recorded in 2024. 

London - Savills

By the end of September 2025, the industrial and office sectors had seen roughly £7 bn (€8.05 bn) and £6.2 bn (€7.13 bn) in transactions, respectively, compared to the full-year 2024 volumes of about £10.8 bn (€12.42 bn) and £9.9 bn (€11.39 bn). Savills anticipates that activity in the fourth quarter will push the 2025 figures above those of the previous year, citing a significant volume of assets currently under offer or in advanced legal stages.
In its recent Market in Minutes report, the international real estate advisor highlighted further positive indicators, including the prime average yield holding steady at 5.75% for the seventh consecutive month since February. Additionally, yields in ten commercial real estate sub-sectors have remained stable for over a year, and four sub-sectors (City of London offices, leisure parks, food stores, and London core leased hotels) are experiencing downward pressure on yields.
Tom Whittington, Director, Savills Research, commented: “While the day-to-day headlines and speculation over the Budget may be casting a pall over the market, it’s easy to lose sight of several economic indicators that actually show us as being in a lot better place than we were 12 months ago. The Bank of England base rate is down 100 basis points, construction GVA has moved from negative to positive territory, exports have seen stronger than expected growth, and the British Chamber of Commerce has revised up its previous GDP forecast to 1.3%. The situation isn’t as gloomy as may be assumed at face value, and against this backdrop we are seeing a notable uptick in investment activity.”
Nick Penny, joint head of National Investment at Savills, added: “While it would be an understatement to describe the UK investment market this year as slow, the wider economic environment has settled and we are definitely seeing momentum return. In offices, investor sentiment is catching up with the occupier market, and we have seen more larger deals transact since Q2, which look set to contribute to London and regional offices having the highest turnover of all the UK sectors in 2025. In industrial and logistics, with a number of large industrial portfolios currently being marketed or under offer, and Q4 traditionally the busiest quarter, we anticipate that full-year industrial volumes will be up on 2024. Looking ahead to 2026, we hope that activity will continue to accelerate so by this time next year we will be talking about volumes being not only up year-on-year, but also on the five-year averages.”