The UK real estate investment trusts (REITs) market size reached USD 78.30 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 143.10 Billion by 2033, exhibiting a growth rate (CAGR) of 6.20% during 2025-2033. Strong demand for income-generating assets, rising tax advantages for investors, growing diversification benefits, the UK's stable legal framework, rapid urbanization, increasing interest from institutional investors, and rising focus on sustainable and residential properties are some of the major factors propelling the growth of the market.
Report Attribute
|
Key Statistics
|
---|---|
Base Year
|
2024
|
Forecast Years
|
2025-2033
|
Historical Years
|
2019-2024
|
Market Size in 2024 | USD 78.30 Billion |
Market Forecast in 2033 | USD 143.10 Billion |
Market Growth Rate (2025-2033) | 6.20% |
Rising Tax Efficiency
The UK Real Estate Investment Trust (REIT) offer tax advantages, making them attractive to investors seeking income-generating assets without corporate tax on rental profits. This is acting as a pivotal factor driving the market growth. In 2023, the UK government made important easements to the UK REIT regulations. A major change permits UK REITs to pay income from their corporation tax-free property rental trades to partnerships without the usual 20% withholding tax, if the partnership members would have qualified for gross payments (e.g., UK companies paying corporation tax) if the payments had been made to them directly. In addition, a new double tax treaty between the UK and Luxembourg, entered into in 2022, will be in full force by April 2024. Pursuant to this treaty, Luxembourg tax-resident real estate-holding vehicles are now liable to UK tax on chargeable gains on indirect disposals of UK property.
Strong Demand for Property Investment
The growing urbanization and increasing demand for residential, commercial, and sustainable properties drive investments in REITs, especially from institutional investors. For instance, in September 2024, Starwood Capital made a £673.5m (€799.3m) offer for the UK real estate investment trust (REIT) Balanced Commercial Property Trust (BCPT). Starwood, through its funds, has agreed to offer the FTSE 250 REIT’s shareholders 96.00p in cash for each share held in a take-private deal that requires 75% of shareholder votes. As of 3 September, the last business day before this announcement, BCPT’s market capitalization was about £598.4m. BCPT's diversified portfolio of 28 properties worth £882.7m is invested in the UK alone. In April, BCPT launched a review to consider options for enhancing shareholder value. This involved selling the business or its assets. Following interest from a number of companies, BCPT stated it chose Starlight Bidco a newly established company owned by Starwood funds to buy the business, stating that the BCPT board unanimously recommends the deal proposed.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type and application.
Type Insights:
The report has provided a detailed breakup and analysis of the market based on the type. This includes equity REITs, mortgage REITs, and hybrid REITs.
Application Insights:
A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes industrial, commercial, and residential.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include London, Southeast, Northwest, East of England, Southwest, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
---|---|
Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
|
Types Covered | Equity REITs, Mortgage REITs, Hybrid REITs |
Applications Covered | Industrial, Commercial, Residential |
Regions Covered | London, Southeast, Northwest, East of England, Southwest, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: