UK commercial property market shows resilience amid slow start to 2026
Investment into UK commercial property totalled £11.2bn in the year to date (YTD), demonstrating underlying resilience in the market despite a more subdued start to 2026, according to Colliers’ latest UK Property Snapshot.
While activity moderated, transaction volumes reflect a period of adjustment as investors respond to the higher-for-longer interest rate environment and ongoing market volatility.
London continues to lead the market, accounting for 41% of total investment volumes so far this year (£4.6bn), with other major regional centres including Manchester and Birmingham also maintaining strong levels of activity.
Cross-border capital remains a key feature of the UK market, representing 42% of all investment activity YTD, underlining continued international confidence in UK real estate.
Sector performance highlights a more selective investment landscape. Offices and industrial have led activity in 2026, accounting for 24% and 22% of volumes respectively, as investors prioritise core assets with strong fundamentals.
The hotels sector has been a standout performer, with YTD investment reaching £1.6bn, significantly ahead of 2025 levels, reflecting growing appetite for operational real estate and confidence in the recovery of the leisure and hospitality market.
In April’s largest deal, Fattal Hotels acquired London’s Hotel Saint for £130m, demonstrating continued demand for well-located, high-quality assets.
Elsewhere, activity across retail and residential has been more measured, as investors remain disciplined in pricing and focus on opportunities with clear income resilience and growth potential.
Oliver Kolodseike, head of research & strategic insights at Colliers, said: “The UK investment market continues to demonstrate resilience, with capital remaining active and investors taking a more selective approach in the current environment.
“We are seeing strong demand for selected sectors and assets, particularly in hotels, core offices and well-let industrial, while London continues to attract a significant share of both domestic and international capital.
“As the year progresses and there is greater clarity around the macroeconomic outlook, we expect confidence to build further, supporting a gradual increase in transactional activity.”
Looking ahead, Colliers expects investment activity to remain steady, with improving visibility on interest rates and pricing likely to support a continued recovery in market momentum through the remainder of the year.