The value-added of real estate in the UK significantly grew from 2013 to 2023, with a brief dip in 2020 due to global disruptions. By 2023, the value stood at £288.71 billion. There were notable year-on-year increases like 7.84% in 2014 and 7.59% in 2022, but also slight declines, as seen in 2020 by -2.55%. Over the past five years, the compound annual growth rate (CAGR) is 2.12%.
Future projections indicate a more moderated growth with an estimated 1.64% CAGR leading to 2028. The anticipated 8.46% growth from 2024 to 2028 suggests steady but slower progress compared to earlier decades.
Future trends to watch for include:
- Potential impacts of economic policies and Brexit.
- Responses to housing shortages and construction activities.
- Environmental regulations and their impact on real estate development.
- The influence of digital transformation on property management and transactions.