Prime office rents are set to rise by up to 31% in key UK locations by 2029, according to new forecasts by BNP Paribas Real Estate.
Prime office rents in London’s West End are predicted to rise from £160/sq ft in 2024 to £210/sq ft by 2029 – a 31% increase – and in the City rents are expected to increase by 25% to £103/sq ft.
In Birmingham, rents are predicted to rise by 28% from £43/sq ft to £55/sq ft and in Leeds rents are also expected to increase by 28% to £51/sq ft.
BNP Paribas Real Estate anticipates rental growth of 25% for Bristol over the course of the next five years, with rents rising by 21% in Edinburgh and 20% in Manchester.
Etienne Prongue, UK CEO of BNP Paribas Real Estate, 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. “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.”
Simon Williams, head of national markets at BNP Paribas Real Estate, added: “We are seeing UK regional office markets come into their own. 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.”
“Simply holding assets is no longer enough. 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.”
Vanessa Hale, head of research and strategy at BNP Paribas Real Estate, 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.”
