Private wealth being driven into UK property as investment surges by 66%

Private wealth is being driven into commercial real estate in the UK, with investment increasing by 66 per cent year-on-year in 2025, according to a report from JLL.

Its analysis found that the UK attracted more than €10.1bn of private investment in commercial real estate last year.

London secured €5.2bn of that total investment, more than doubling its volume from 2024.

JLL stated that commercial real estate had seen “significant repricing” across Europe and Asia-Pacific, which had created an attractive opportunity for private wealth investors.

It added that quality buildings in core markets were trading below replacement rates, which has not been seen since the financial crisis, and institutional capital remained largely on the sidelines.

"If you're looking at an asset that is currently trading at a discount of around 20-30 per cent compared to previous peaks, then on a long-term basis that represents good value, and when combined with future rental growth and solid fundamentals, then that's a pretty mitigated risk," said JLL head of private wealth for EMEA, Joseph von Maltzahn.

"When you couple that with the question 'what would it cost to replace this building today?' and the answer is more than you're paying, your downside is well protected."

Private capital has been the primary source of funding for commercial real estate globally for the past four years.

JLL noted that private wealth investors were winning deals based on execution certainty and speed, rather than just making higher bids, with clearer and faster decision-making processes and less execution risk than institutional investors.

"Rising construction and labour costs are being closely monitored by investors, in addition to the rate environment,” said JLL global lead, international and strategic capital, head of private wealth in APAC, Tim Graham.

"That's a bullish signal for existing well-located assets, because constrained supply creates rental growth potential in markets where occupier demand is healthy."

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