Student accommodation, office space and retail development fuel UK commercial property rebound

According to Together’s latest report, ‘Cities in focus 2025: Commercial property insights’, 82% of respondents agreed that office space offers a good investment opportunity over the next five years: with almost one-fifth (16%) expecting revenue growth to increase by between 21 and 30% by 2030.

Some 41% of property professionals, investors and developers identified modernisation and technology upgrades as top trends across all sector office refurbishments, with 38% adding there is a demand for wellness-focused and fitness-related upgrades.

When looking at student accommodation, 81% of property professionals, investors and developers believe investing in this over the next five years represents a good opportunity.

Some 18% of this group are expecting a revenue hike of between 11 and 20% over that period, with 10% of this group foreseeing revenue growth to increase by between 31 and 40%.

According to the analysis, the retail sector’s growth in 2024 in terms of value of sales increasing by 1.4% to £517bn, and the number of transactions rising by 0.7%, is a clear sign of early recovery.

Together predicts that online shopping will continue to perform well, with expectations of a continued uptick in quality logistic and distribution hubs popping up around the country in strategic locations.

With the next five years expected to deliver a 32% surge on average in retail revenue from highstreets, retail parks and shopping centres, 79% of commercial property professionals think shops offer the best investment opportunity.

Some 83% believe warehouses and industrial properties will prove the best value for money investments by 2030, with 15% expecting revenue growth to rise between 21 and 30% over the period.

Ryan Etchells, CCO at Together (pictured above), commented: “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.

“While 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 past 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 these property professionals to continue working with the right type of lender who can ensure they’re financially poised and adaptable to seize new opportunities.”