"Whether it’s student housing or investing in the future of retail and office space, by 2030, the landscape for the commercial market will have changed and improved exponentially for investors"
- Ryan Etchells - Together
After grappling with inflationary pressures, a challenging tax regime, and evolving development regulations over the past five years, the UK commercial real estate market is showing signs of recovery, according to new insights from Together.
CBRE's latest report shows commercial property capital rose by 0.3% in March 2025, while rental values increased by 0.4%, contributing to a 0.8% total return month-on-month. Looking ahead, Together’s report, Cities in Focus 2025: Commercial Property Insights, highlights that demand for office space, retail units, and student housing is driving this resurgence across the UK’s commercial property market.
Back to the office: the future for workplaces
Post-Covid, a “back to the office” trend has sparked increased investment, as businesses either build new sites designed for hybrid working patterns and lower overheads or refurbish existing ones to meet modern workforce expectations.
According to the report, 41% of property professionals, investors, and developers say modernisation and technology upgrades are key trends, while 38% highlight the demand for wellness-focused and fitness-related upgrades in office refurbishments. Additionally, 82% of respondents agree that office space presents a strong investment opportunity over the next five years, with 16% expecting revenue growth between 21% and 30% by 2030.
Retrenching university-lets: the future for students
Despite a dip in student dorm reservations, the demand for student accommodation, especially Purpose-Built Student Accommodation (PBSA), remains high. With universities facing funding freezes, the private sector is increasingly relied upon to bridge the gap.
An impressive 81% of property professionals, investors, and developers see investing in student housing as a strong opportunity in the next five years. Among them, 18% expect revenue growth of 11% to 20%, while 10% predict growth of 31% to 40% over the same period.
Instore vs. Online: the future of the high street
Retail sales grew by 1.4% to £517 billion last year, signalling early recovery after two years of decline. As online shopping continues to thrive, logistics and distribution hubs are expanding across strategic locations in the UK.
The next five years are expected to bring an average 32% increase in retail revenue from high streets, retail parks, and shopping centres. Among commercial property professionals, 79% believe shops offer the best investment opportunity, while 83% see warehouses and industrial properties as the best value-for-money investments by 2030. Additionally, 15% of these professionals expect revenue growth of 21% to 30% in the same period.
“Whether it’s student housing or investing in the future of retail and office space, by 2030, the landscape for the commercial market will have changed and improved exponentially for investors," explained Together's chief commercial officer, Ryan Etchells.
He added, “Whilst it’s good to see light at the end of the tunnel after a difficult few years, now is the time to support and nurture this growth so it is sustained. With all the new regulations and government plans for property over the last 12 months, there has been a rise in requests for rolling instead of fixed contracts on sites, staggering payments rather than investing upfront, and shorter timelines.
"This is why it will be critical for property professionals to continue working with the right type of lender who can ensure they’re financially poised and adaptable to seize new opportunities.”
