CBRE Predicts Resilient UK Real Estate Market Despite Economic Uncertainty
The UK real estate market has shown resilience in the face of mounting geopolitical and economic uncertainty, according to CBRE's mid-year UK Real Estate Market Outlook.
The advisory firm revised its 2026 UK GDP growth forecast down to 0.9%, from 1.2% at the start of the year, citing geopolitical tensions and higher commodity prices.
Investment activity slowed during the first six months of the year, with UK transaction volumes falling 8% year-on-year to £23bn. However, CBRE noted that the UK remained Europe's most active investment market, with investors favouring prime assets in core locations over secondary stock.
Tasos Vezyridis, head of European research at CBRE, said: 'The first half of 2026 has been shaped by geopolitical conflict, inflation concerns and a changing political landscape. Despite this, the occupational market is robust, debt markets remain liquid and demand for prime assets continues to exceed supply in many sectors.'