Savills has raised its outlook for the average total return for U.K. real estate in its 2025 cross-sector outlook, forecasting an average return of 7.4 percent, compared to 6.8 percent for 2024.
In its annual cross-sector forecasts, the international real estate advisor says that while income will continue to make up the bulk of property performance, from 2025 onward a burgeoning recovery in capital value growth in most sectors will help boost investor returns.
Residential buy-to-let in the Northwest remains Savills top performer for annualized returns, as it did in its 2024 for GLA’s forecasts, but central London and regional offices have moved up their table as they say positivity in the sector is being driven by the restrained supply of prime space in most cities and the expectation of yield hardening. In total, 12 U.K. property subsectors are forecast to see annualized returns of more than 8 percent between 2025 and 2029, an increase from eight sectors for the ye
