U.K. real estate markets have proven to be resilient through the first half of 2026 despite a more challenging economic and geopolitical backdrop, according to CBRE’s 2026 U.K. Real Estate Market Outlook Mid-Year Review.
CBRE now forecasts U.K. Gross Domestic Product (GDP) growth of 0.9 percent in 2026, revised down from 1.2 percent at the start of the year as geopolitical tensions and higher commodity prices weigh on the economic outlook. Inflation is expected to peak at around 3.5 percent in fourth quarter, while interest rates are expected to remain unchanged and unemployment is set to rise modestly before easing in 2027.
Investment momentum softened in first half 2026 amid geopolitical volatility, with U.K. transaction volumes totaling £23 billion ($31 billion), down 8 percent year-on-year. The United Kingdom, however, received the most investment in the y
