Trends to watch out for in the Real Estate market in 2025:
In this article we highlight some of the most influential trends that will shape the property landscape in 2025, as highlighted in Property Week‘s latest Watching Brief:
Shared Living & Regional Build-to-Rent (BTR):
The rising cost of living and construction continues to drive growth in co-living and shared spaces. Meanwhile, the regional BTR market is poised for expansion, with institutional investors eyeing opportunities in smaller cities and towns.
Housebuilding Challenges & Retrofit Revolution:
With housebuilding at its lowest since 2016, questions remain about whether policy changes can boost delivery. The push for sustainability is also intensifying. With 70% of commercial floorspace below energy efficiency standards, retrofit-first policies are becoming central to local plans. Expect retrofitting to take precedence over demolition in the quest for net-zero carbon goals.
Prime Office Rents & Office-to-Residential Conversions:
Demand for prime office space remains strong, driving rents to record highs. Simultaneously, permitted development rights (PDR) are enabling the conversion of underutilised commercial buildings into much-needed housing.
Contractor Collapses & Industry Reforms:
The collapse of ISG has spotlighted the razor-thin margins and systemic risks in construction. Calls for reforms in auditing and industry practices are gaining momentum.
Investors, developers, and policymakers will need to navigate this dynamic landscape, collaboration and innovation in order to unlock progress.