Key Insights From The London Real Estate Forum 2026

The London Real Estate Forum, 2026, held at City of London Guildhall, shared many interesting insights into the world of real estate, both commercial and residential and development alongside the importance of the public and private sectors working together.

Connectivity in the capital was one of the key opening points of discussion. Several statistics were shared: 1.3 GW being data centre capacity in the capital, 750,000 being the capacity of the Elizabeth Line, £95/sq. ft. being the passing prime office rent for the city which is 36% higher than 2025 and a great proxy for asset value. The diversity of the capital is one of its unique selling points, and the importance of AI driven narratives were considered critical to the London of the future. However, in the global race to attract AI and DC capacity London is in the race but not necessarily winning in comparison to other capital cities.

Building costs and the accessibility of affordable housing was commented upon by speakers, such as Thomasin Renshaw of Greystar, who touched on various issues of development. The question of whether London is still a good place for development was raised with risks for development being high whilst terms for development remaining unfavourable. Renshaw commented that housing start, the moment that excavation begins for the foundation of a new building, is down by 7% and that the cost of gateway risk for investors of schemes going forward is very high whereas the return remains largely the same. She commented also that investors have had their fingers burnt in the past and called for greater transparency from planning.

This message was echoed in later sessions on evolving housing delivery which focused on the viability squeeze, the absence of domestic investment and help to buy and factors such as the Building Safety Levy and issues of funding and confidence. One speaker summarised the situation by stating that 'Londoners can only afford to buy what developers cannot afford to build'. This message was echoed in recent comments of the FT that across the city, the market is sufficiently lifeless that developers claim that building new homes is barely profitable. With recent months showing luxury homes sold at huge discounts and other properties remaining unsold, the number of properties for sale in London is at a 16-year high, and buyers' enquiries are 9% lower than last year, according to Rightmove.

Adam Challis, of JLL, commented that that there are various challenges to capital, liquidity and exit route viability, whilst the consistency of planning is variable. He noted that whilst London has traditionally been more attractive to investors than areas of the UK such as the Rust Belt, it is important that London remains and makes itself attractive to investors to avoid decline. Katie Stewart of Environment at the City of London Corporation responded by touching upon how key it is for London to be open to wider market investment and the importance of being connected with core cities across the UK and the world.

The One Built Environment campaign by New London Architecture (NLA) was a key initiative central to discussions at the Forum. The initiative calls on the UK Government to formally recognise the built environment as a single, connected economic sector within the national Industrial Strategy. The built environment generates 25% of the UK's GVA and contributes £568 billion (approximately 25%) of the UK economy, being twice the financial services sector. It supports 3.8 million jobs, accounting for 1 in 8 workers across the UK and generates £168 billion annually in global exports (about 20% of total UK exports).

London's office market was another key area explored by JLL as a safe haven, a place of resilient returns and an anchor in uncertain times whilst issues of exit and softening yields remain. Discussions indicated that whilst primary office space remains valuable, secondary office space has suffered. New sub-markets were identified such as TNT occupiers who operate in a footloose fashion. AI occupiers were compared to the life science occupiers of 4 years prior and the Bank of England's cautions on this sector were noted. Other points of note were that whilst accessibility to unaffordable areas remains, cross-rail to access the centre of the city has altered the office market whilst hopes of return of institutional capital abound.

The role of retail in creating world-class leading destinations was another key discussion point led by Savills with the central question being 'what does the ground floor look like'? Wellness, health and beauty were identified as key sectors, growing by 18%, the biggest sectors after food and beverage. Whilst the shift of retail online has led to the decimation of the high street, and growing vacancy alongside the issues such as high labour cost, Marie Hickey of Savills commented on the affluence of consumers and growth in London compared to key competitor cities such as New York, Tokyo, Madrid. Samantha Bain-Mollison, Head of Retail Places for London, spoke in detail about the great estates of London as one of the largest landowners and touched upon specific areas such as Temple, Seven Sisters and Baker Street with central issues faced by the great estates being tenant mix, safety upgrading, and the importance of private and public relations.

Kat Hanna of Interim Director of Strategy Oxford Street Development Corporation echoed this message by touching on issues of safety, cleanliness, transport and infrastructure. The pedestrianisation of Oxford Street from 26 October 2026 was expanded upon by Hanna effecting almost 1km of the street, between Orchard Street and Great Portland Street was expanded upon by Hanna. Whilst some have raised concerns about traffic being pushed to nearby streets, Hanna voiced enthusiasm and positivity for the pedestrianisation pointing to the diversity of the crowds on Oxford Street and the vibrancy of the area.