Commercial property transactions are expected to rebound sharply this year after several years of flat activity with new forecasts pointing to the strongest growth since the post-pandemic recovery.
Research from BPS London shows non-residential property transactions across the UK fell by 1% in 2025 to an estimated 125,090 deals, continuing a pattern of sluggish movement in the commercial market since the surge seen after COVID-19.
Apart from the 26% rebound recorded in 2021 and a modest 5% rise in 2024, transaction levels have largely moved sideways for most of the past decade, reflecting weak investor confidence and a lack of momentum across the sector.
However, 2026 is forecast to mark a turning point, with activity expected to rise by 6% to around 132,604 transactions – the highest annual total since the previous peak of 128,280 deals in 2017.
IMPROVED SENTIMENT
BPS London said the expected uplift reflects improving sentiment among investors, alongside growing demand for well-located assets that can be repositioned to meet modern occupier requirements.
Mahir Vachani, Director at BPS London Developments, says: “Over the last few years the commercial property market has largely been in a holding pattern, with transaction volumes moving slightly up or down but without any sustained period of growth.
However, the forecast for 2026 suggests we may now be entering the next phase of that cycle, where improving confidence across the sector begins to translate into stronger levels of transaction activity.”
BIG OPPORTUNITY
He adds: “Our recent acquisition on Tottenham Court Road reflects that confidence. We see significant opportunity in acquiring well-located assets in prime London locations and upgrading them to deliver the kind of high-quality workspace that modern businesses increasingly expect.”
BPS recently completed the acquisition of a West End office building on Tottenham Court Road in Fitzrovia alongside Purestone Capital, with plans to reposition the asset as part of a value-add investment strategy targeting prime London workspace.
