Real estate investment rises to £50bn in 2024

Commercial real estate investment rose by almost a quarter year-on-year to hit £50bn in 2024. Retail led the rises, according to analysis from BNP Paribas Real Estate, with investment up by a third at £9.1bn, its best year since 2021. Industrial and logistics investment rose by 13% and residential investment by 10%, while offices investment dropped 6% to £9.5bn. Charlie Tattersall, senior associate director, capital markets research at BNP Paribas Real Estate, said: “2024 saw a welcome improvement in investment market conditions, but stubborn inflation and recent bond market turmoil have served as a reminder that the recovery will be bumpy. “Investors are increasingly aware of the inherent opportunity the UK’s leasing market offers to those targeting above-inflation income growth. There is capital ready to deploy and they are looking for a reason to invest, but ultimately greater pricing transparency will be the driving force behind this.” Simon Williams, head of national markets, added: “We are in unprecedented territory, a new cycle overlayed with structural shifts in real estate fundamentals… “Retail, in particular retail parks, has seen strong year-on-year rise in activity as wage growth and disposable incomes continue rising in real terms. I suspect we’ll see a lot more transactions coming through on this side as investors look to reposition portfolios away from global uncertainty and increase exposure to resilient consumer demand.” Image by Tom Nicholson/LNP/Shutterstock