Savills expects office and industrial property investment to go past last year’s total by the end of 2025.
By September 2025, around £7bn had been invested in industrial and £6.2bn in office property.
This compares to full-year 2024 totals of about £10.8bn for industrial and £9.9bn for offices.
According to Savills there are plenty of assets under offer or at an advanced legal stage and expects Q4 to push the numbers over last year’s figure.
The latest Market in Minutes report from Savills showed the prime average yield stayed at 5.75% in September for the seventh straight month.
Yields in 10 commercial property sub-sectors have been stable for over a year.
Four sub-sectors including City of London offices, leisure parks, food stores and London core leased hotels saw yields fall.
Tom Whittington, director, Savills Research, said: “While the day-to-day headlines and speculation over the Budget may be casting a pall over the market, it’s easy to lose sight of several economic indicators that actually show us as being in a lot better place than we were 12 months ago.
“The Bank of England base rate is down 100 basis points, construction GVA has moved from negative to positive territory, exports have seen stronger than expected growth, and the British Chamber of Commerce has revised up its previous GDP forecast to 1.3%.
“The situation isn’t as gloomy as may be assumed at face value, and against this backdrop we are seeing a notable uptick in investment activity.”
Nick Penny, joint head of national investment at Savills, said: “While it would be an understatement to describe the UK investment market this year as slow, the wider economic environment has settled and we are definitely seeing momentum return.
“In offices, investor sentiment is catching up with the occupier market, and we have seen more larger deals transact since Q2, which look set to contribute to London and regional offices having the highest turnover of all the UK sectors in 2025.
“In industrial and logistics, with a number of large industrial portfolios currently being marketed or under offer, and Q4 traditionally the busiest quarter, we anticipate that full-year industrial volumes will be up on 2024.”
Penny added: “Looking ahead to 2026, we hope that activity will continue to accelerate so by this time next year we will be talking about volumes being not only up year-on-year, but also on the five-year averages.”
