The Royal Institution of Chartered Surveyors (RICS) has released its Q1 2025 UK Commercial Property Monitor, revealing that while market sentiment remains generally cautious, early indications suggest that certain sectors are beginning to show signs of improvement.
RICS Chief Economist, Simon Rubinsohn, said:
“Despite the turbulence engulfing the geo-political environment following President Trump’s tariff announcement at the start of April, feedback to the latest RICS was steady with the headline investment enquiries metric returning to positive territory, albeit modestly, for the first time since the second quarter of 2022.
“Longer term indicators, while generally constructive, continue to reflect the likely headwinds facing the real estate market over the next twelve months. Aside from the challenges linked to the global economy, concerns around domestic issues including the impact of the uplift in NI contributions are seen as likely weighing on occupier demand.
“Meanwhile the bifurcation in the office sector remains very visible in the latest results with the outlook for prime space seemingly improving as sentiment around secondary offices remains deeply negative.”
Key highlights from the report include:
Many respondents noted the impact of US tariffs on the commercial property market, including Graham Chase of Chase Sinclair Clark who raised these concerns in London, whilst Duncan Locke of McWhirter Locke Ltd highlighted several domestic issues affecting the market: “The overall effects of stubborn energy costs inflation, Rateable Value increases and National Insurance rises are affecting small businesses and their decision-making regarding property occupation.”
-ENDS-
Notes for editors:
The report captures responses from 519 professionals across the UK and paints a detailed picture of shifting market sentiment amid a complex macroeconomic landscape.
The full report is available at this link.
Commentary from survey respondents regionally can be found in the economic pdf on the back pages – you are free to use these.
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