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Direct Real Estate Activities in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Luyi Geng Luyi Geng London, United Kingdom Last Updated: July 2025 SIC UK-L681

Revenue

£622.9bn

2025-26

£650.8bn

Past 5-Year Growth

Profit

£XXX.Xbn

Employees

2m

Businesses

2m

Wages

£XX.Xbn

Direct Real Estate Activities in the UK industry analysis

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025.

Trends and Insights

  • Falling rates reduce the cost of borrowing for potential buyers. This will boost property transactions and place upwards pressure on prices.
  • Falling interest rates support revenue. Mortgage rates have trended upwards over the past couple of years, hitting demand for residential property. Now that rates are falling, buying a home will be more feasible for some, boosting estate agents’ revenue.
  • The real estate market remains fragmented. There’s plenty of room for small and large companies alike to succeed in all corners of the market, given the wide array of properties dealt with.
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Top Questions Answered in this Report

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What is the market size of the Direct Real Estate Activities industry in the United Kingdom in 2025?

The market size of the Direct Real Estate Activities industry in the United Kingdom is £622.9bn in 2025.

How many businesses are there in the Direct Real Estate Activities industry in the United Kingdom in 2025?

There are 2m businesses in the Direct Real Estate Activities industry in the United Kingdom, which has grown at a CAGR of 3.7 % between 2020 and 2025.

Has the Direct Real Estate Activities industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Direct Real Estate Activities industry in the United Kingdom has been growing at a CAGR of 1.8 % between 2020 and 2025.

What is the forecast growth of the Direct Real Estate Activities industry in the United Kingdom over the next 5 years?

Over the next five years, the Direct Real Estate Activities industry in the United Kingdom is expected to grow.

What does the Direct Real Estate Activities industry in the United Kingdom include?

Residential property and Commercial property are part of the Direct Real Estate Activities industry in the United Kingdom.

How competitive is the Direct Real Estate Activities industry in the United Kingdom?

The level of competition is high and increasing in the Direct Real Estate Activities industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Real estate transactions must align with strict regulations. Regulation in real estate exists to protect the interests of buyers, sellers, investors and the public.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Direct Real Estate Activities in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Profit is back on the rise. With employees returning to offices and property transaction numbers growing as interest rates edge down, demand for real estate services is climbing, boosting profitability.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Direct Real Estate Activities in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

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