The UK office market is on track to deliver the strongest rental growth in a generation, with prime office rents set to rise by up to 31% in key locations by 2029, according to new 5-year forecasts by BNP Paribas Real Estate.
The UK’s pricing realignment has created a moment of opportunity in the office sector and the combination of restricted supply pipelines, resilient occupier demand, and a clear flight to quality is driving rental growth that will define the market for the next five years, the firm said.
“With economic fundamentals reshaping global real estate markets, the UK is emerging as one of the most compelling investment destinations. Convincing rental growth in the prime office sector has been coming through since 2023 and this momentum is set to continue. The sector is now at a turning point, offering investors a rare opportunity to capitalise on historic pricing dislocation and resilient rental growth” said Etienne Prongue, UK CEO. “A structural shift towards income growth is well underway, and investors who recognise this stand to benefit from rental uplifts that will significantly outpace inflation.”
Rents Set for Double-Digit Growth Across UK Cities
The new forecasts from BNP Paribas Real Estate highlight the strength of the UK market, with prime office rents expected to see substantial growth to 2029 across London and the UK’s key regional cities:
| Location | Prime Office Rent 2023 (£/sq ft) | Prime Office Rent 2024 (£/sq ft) | Prime Office Rent 2029 (£/sq ft) | % Increase (2029 vs 2024) |
| London West End | £150 | £160 | £210 | 31% |
| City of London | £75 | £82.50 | £103 | 25% |
| Birmingham | £42.50 | £43 | £55 | 28% |
| Leeds | £37 | £40 | £51 | 28% |
| Bristol | £42.50 | £48 | £60 | 25% |
| Edinburgh | £42.50 | £46 | £56 | 21% |
| Manchester | £43 | £45 | £54 | 20% |
Source: BNP Paribas Real Estate
London: A Resilient Core Market for Global Investors
London remains at the forefront of the UK’s outperformance, with prime rents in the West End and City projected to exceed 25% by 2029. Strong demand from finance, technology, and professional services firms is underpinning this growth as demand for high quality space is boosted by ESG considerations, downsizing, attracting talent and encouraging employees back to the office.
“London remains one of the most resilient and supply-constrained office markets in the world,” said Fergus Keane, Head of London Capital Markets. “The West End’s appeal in particular remains unparalleled, particularly for high-growth sectors such as private equity, hedge funds, and tech. These occupiers see prime office space as a necessity, and with supply remaining constrained, rents are expected to climb steadily.”
Meanwhile, the City of London is seeing increasing demand for best-in-class sustainable office spaces, with occupiers willing to pay a premium for flexible, ESG-compliant buildings.
Regional Cities Offering Stronger Growth Potential
Beyond London, UK regional markets are demonstrating equally strong fundamentals, supported by infrastructure investment, economic diversification, and increased corporate relocations.
“We are seeing UK regional office markets come into their own,” said Simon Williams, Head of National Markets. “In cities like Birmingham, Bristol, and Leeds, demand for high-quality office space is accelerating, while supply remains limited. As a result, rental growth in these cities is on course to outstrip historic norms.”
Birmingham, with its growing financial and tech sector, is expected to see rental increases of 28%, while Bristol’s strong demand from creative and professional services firms is driving a projected 25% uplift. Leeds, supported by its status as a leading financial hub in the North, is forecast to see rents rise by 28%.
Active Asset Management Will Underpin Growth
BNP Paribas Real Estate also highlights the UK office market is no longer one where passive capital appreciation delivers reliable returns. Investors are increasingly focused on stock selection, asset repositioning, and income growth as key drivers of performance.
“Simply holding assets is no longer enough,” added Williams. “Investors must actively manage their portfolios, ensuring buildings meet modern occupier expectations—whether that means upgrading ESG credentials, reconfiguring layouts, or enhancing amenities. Those who take this approach will be best positioned to benefit from the UK’s clear rental growth trajectory.”
Conclusion
Vanessa Hale, Head of Research & Strategy, said, “As global real estate markets adjust to new economic realities, the UK stands out as a market poised for outperformance. With double-digit rental growth forecasts in the office sector, constrained supply, and a shift towards income-driven returns, the fundamentals point to a strong investment cycle ahead—one that will be defined by active management, careful asset selection, and a focus on sustainable long-term income growth.”
