The UK office investment market in 2025 has shown notable resilience, with strong transaction volumes and a growing shift toward regional markets. Despite all of these global economic uncertainties, investor confidence has strengthened, underpinned by easing interest rates and improved credit conditions. In the first half of 2025, UK commercial real estate investment has reached approximately £21.9 billion, with offices representing a significant share, a 15% increase from the same period in 2024.
Regional office markets have emerged as key areas of opportunity. Investment volumes in the UK’s regional cities, such as Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester have been steadily rising. In 2024, regional office investment reached £2.9 billion, up from 10% from the previous year, reflecting growing investor interest outside London. Supply constraints in these cities, where construction volumes remain low, further highlight the potential for development and acquisition.
Prime office spaces continue to dominate investor demand. High-quality, well located offices are attracting interest from both domestic and international investors seeking long-term, resilient assets. Tenant activity has stabilised across UK markets, with take-up totalling 1.3 million square feet on Q2 2025, consistent with the previous quarter. This steady demand underpins confidence in the sector and reinforces the focus on top-tier office assets.
The outlook for the remainder of 2025 is optimistic. CBRE projects UK commercial real estate investment could reach £53 billion by year-end, a 15% increase from 2024, fuelled by sustained demand and favourable economic conditions. Regional markets, in particular, are expected to benefit from limited supply, creating opportunities for investors in the larger cities. These trends suggest that offices outside of London may experience faster rental growth and higher absorption over the coming years.
While challenges remain, including broader economic uncertainties, the combination of resilient demand, regional growth, and constrained supply positions the market for continued strength. For investors, 2026 represents an opportunity to capitalise on both prime assets in central locations and emerging opportunities in regional hubs.
