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UK Commercial Property: Bright 2026 Forecast

  • Writer: Sarah Ruivivar
    Sarah Ruivivar
  • 5 days ago
  • 2 min read
Image: Unsplash
Image: Unsplash

The commercial property market in the UK is looking rather chipper as we head into 2026, according to Rightmove.


Despite the November Budget throwing a few curveballs, demand for leasing and investment held its ground in the final quarter of 2025. Sure, growth wasn't as sprightly as in previous quarters, but considering the late-November Budget jitters, it’s still a jolly good show!


Andy Miles from Rightmove notes that the budget brouhaha had some business leaders playing the waiting game. Yet, year-on-year demand still managed to shine, especially in the industrial sector, which saw an 11% leap in leasing demand. Offices and leisure spaces also saw modest increases, though retail took a bit of a tumble.


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Investment demand mirrored these trends, with industrial properties leading the charge again. Meanwhile, office space in London’s prime spots like the City and Westminster saw a dip, possibly due to both budget-related hesitations and a tight supply of prime properties.


Looking ahead, 2026 seems promising! With potential interest rate cuts on the horizon, commercial property investment could become even more appealing. The Budget has also introduced a fresh business rates regime, categorising properties into five bands from April 2026. This includes a new distinction for retail, hospitality, and leisure properties, which could shake things up nicely.


So, while the cost climate remains a tad tricky, the stable demand and anticipated rate reductions are set to give the 2026 market a hearty boost. Here’s to a year of opportunity and growth in the UK’s commercial property scene! Cheers!


Want to hear more? Join Mal & Matt on the Property AI Report Podcast each week!

Access from your preferred podcast provider by clicking here



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