"While London continues to draw investors, regional cities are gaining appeal, and we expect this trend to grow over the next five years"
- Ryan Etchells - Together
Birmingham, Manchester, and Glasgow are emerging as key hubs for commercial property investment, according to Together’s latest report, ‘Cities in focus 2025: Commercial property insights.’ These cities offer distinct opportunities, with forecasts pointing to peak yields and strong profits over the next year.
While London remains a focal point for investors, property professionals and developers are showing increasing interest in these major regional cities, along with a growing appetite for buy-to-let (BTL) properties.
Birmingham’s diverse economy sparks investor interest
Known for its rich heritage and as one of only eight world Craft Cities in Europe, Birmingham continues to attract new industries and employees. It ranks among the UK’s fastest-growing economies, making it an attractive destination for commercial property investment in 2025.
A Together survey found that 70% of commercial property professionals believe office space in Birmingham offers good investment potential over the next five years. The same proportion sees retail units as promising, while 78% highlight student housing or purpose-built student accommodation (PBSA) as offering strong yields.
Together’s lending data supports this optimism, showing a 38% rise in commercial and buy-to-let mortgages and bridging finance in Birmingham. In 2024, loans reached £110m, up from £80 million the previous year.
Manchester’s retail and tech sectors fuel growth
Manchester, a longstanding commercial centre in the North, attracted over 37.5m visitors in 2024. The city benefits from a large supply of student accommodation, start-ups, retail spaces, and rental homes, particularly as it retains tech industry talent.
In Together’s survey, 77% of investors and property professionals see retail space—including high street bars, restaurants, retail parks, and shopping centres—as a strong investment opportunity over five years. Additionally, 40% believe semi-commercial properties, such as flats above shops, hold significant potential.
Among BTL landlords in Manchester, a third expect rental yields to grow by up to 10% in the next year, while 19% anticipate increases between 10% and 25%. A smaller group, 8%, forecasts yields rising by 26% to 50%.
Together’s buy-to-let lending in Manchester rose by 92% to £52.5m from 2023 to 2024, reflecting this positive outlook.
Glasgow’s transformation supports commercial demand
Glasgow continues a major city centre transformation in 2025, revitalising key shopping streets and attracting professional services firms to new office spaces. Demand also remains strong for office accommodation at innovation hubs among skilled graduates.
Together’s survey shows 80% of investors and property professionals view Glasgow’s retail sector as a good opportunity in the next five years. 28% have noticed more high street chains and restaurants opening in the past year, while 98% consider semi-commercial properties attractive investments.
Supporting this trend, Together’s lending in Scotland increased by 31% between 2024 and 2025.
Positive signs and cautious optimism
“Our research highlights overall optimism across the commercial property market," explained Together's chief commercial officer Ryan Etchells. "While London continues to draw investors, regional cities are gaining appeal, and we expect this trend to grow over the next five years.
He added, “There is a sense the sector has turned a corner, with a shift back to office or hybrid working, business confidence at its highest level in nine months, and renewed optimism about UK economic growth.
“Property professionals should seek flexible financial support to capitalise on opportunities to grow and diversify their portfolios. The specialist lending sector is well placed to provide the finance needed to meet these ambitions.”
