CoStar: UK offices led Q1 2026 investment

05/06/2026 – 05:05 AM

LONDON–(BUSINESS WIRE)–
The office sector attracted the largest share of investment in the first quarter of 2026, according to data from CoStar, a global leading provider of online real estate marketplaces, information and analytics in the property markets.

Offices Leading UK Investment in Q1 2026

Office investment reached £2.9 billion, accounting for 30% of total volumes, with activity concentrated in larger lot sizes in London and a small number of key regional cities.

Industrial investment totalled £1.8 billion, marking the sector’s weakest quarterly out-turn in nearly six years.

Retail investment stood at £1.2 billion, halved from the previous quarter and 60% below the five‑year quarterly average.

Hotel investment also totalled £1.2 billion, although rising energy costs and geopolitical uncertainty present near‑term headwinds.

“UK commercial property investment totalled £9.7 billion in the first quarter of 2026,” said Grant Lonsdale, senior director of market analytics at CoStar Europe. “This was less than half the volume recorded in last year’s final quarter, when US investors deployed nearly £10 billion into healthcare assets, and nearly 40% below the five‑year first‑quarter average.”

The full analysis can be found here.

For more information about the company and its products and services, please visit www.costargroup.com.

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted over 131 million average monthly unique visitors in the first quarter of 2026, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260506436227/en/

Karolina Capova

Senior Media Relations Specialist

kcapova@costar.com

Source: CoStar Group