The commercial property industry supported a record number of jobs and contributed the equivalent of more than 7% of total UK GVA last year, according to analysis carried out by Lichfield on behalf of the British Property Federation (BPF).
The annual assessment of the industry’s economic footprint found the commercial real estate sector directly and indirectly supported more than 2.6 million jobs in 2022 – a 10% increase on 2019.
Through employment and transaction taxes and business rates the sector contributed £42.3bn to the exchequer in 2022 and delivered £137.5bn in economic output – a 28% increase on the previous year and 18% higher than pre-pandemic.
Melanie Leech, chief executive of the British Property Federation, said: “The commercial real estate sector has demonstrated its resilience and despite a challenging economic outlook during 2022 is now supporting an even greater share of jobs across the country and contributing billions of pounds to the national economy.
“Businesses operating in the sector are continuing to navigate a combination of external pressures including build cost inflation, interest rates and skills shortages in key areas. At the same time they are fully committed to tackling the urgent need to reduce embodied and operational carbon emissions.
“This report shows what a significant economic partner the sector is to government and the importance of ensuring that it works effectively in partnership with the public sector not only to stimulate growth and increased productivity, but to create healthy sustainable communities across the whole country.”
