UK Real Estate Outlook 2026

The Real Estate sector was poised for a renaissance in 2025. This time last year, commentators predicted – perhaps in hope as much as expectation – that the pandemic-induced stagnation was over. 

The reality: sentiment has certainly improved, and transaction volumes and values are trending in the right direction. However, the last 12 months fell short of an uninhibited resurgence. There’s good – certain sectors (including offices, living and data centres) are benefitting from strong demand. There’s bad – the global economy is still misfiring, and capital markets remain cautious. We’ll leave the ugly to the Carbuncle Cup.

As lawyers, we are not in the business of predictions. We have instead focused on three areas against the current economic backdrop we see as central to the current real estate market: the living sector; London offices and the resurgence of Canary Wharf; and data centres and digital infrastructure.

With very best wishes from the Linklaters Real Estate Team for a successful 2026.  Jack Shand, Counsel, Real Estate