Despite a turbulent backdrop of geopolitical shocks and economic uncertainty, UK larger portfolio property investors are maintaining a long-term perspective, with over half planning to grow their portfolios in 2025, according to Handelsbanken’s fourth annual Property Investor Report.

The report reveals a sector adapting to change, pivoting towards commercial assets, embracing sustainability, and showing renewed confidence in London as the top investment destination.

Informed by a survey of larger portfolio real estate investors and property management professionals, the report underscores a resilient market. Key data points highlight a cautious but persistent optimism: 54% of respondents plan to expand their portfolios over the next 12 months, and 80% expect their portfolio values to rise. For the first time, commercial property has overtaken residential as the most attractive asset class, while London has reclaimed its position as the most desirable region.

Handelsbanken commissioned research in Q1 2025 among a panel of 200 real estate investors, property management professionals and residential or commercial landlords across the UK. Approximately one-fifth (19%) of respondents had between 5-15 investment properties, 18% owned between 15-25 properties; another 18% owned between 25-50 properties, and 47% owned more than 50 properties (figures subject to rounding).

Just over half (51%) had a total portfolio worth up to £5m, 47% had portfolios valued between £5m to £10m, and 2% had portfolios more than £10m. Regarding underlying asset classes (panellists could select multiple classes): 61% included Purpose-Built Student Accommodation (PBSA) assets in their portfolio, 57% had HMO student lettings; 53% had offices; 53% had industrial properties, 24% had non-student lettings HMOs, 39% had retail properties, 30% had leisure & hospitality assets, 16% had healthcare properties, and 14% had static park homes assets.