Despite an unprecedented period of macroeconomic volatility, the second Future Property report by Investec has revealed that private clients with exposure to UK real estate are more optimistic than they were two years ago when Investec’s inaugural survey was undertaken.

At the same time, the higher interest rate environment of the last 18 months has failed to dissuade investors from increasing their exposure to UK real estate.

Reflecting the value-add expertise of the private client cohort and asset repricing, the report reveals a major bounceback for the office sector. Offices are now the third most appealing asset class from an investment perspective, up from seventh, selected by 35% of respondents in 2024 compared to 23% in 2022.

Shivani Goolab, head of private client real estate at Investec, said: “Our latest private client report presents a compelling case for UK real estate, with a clear shift in sentiment from resilience against a volatile environment to one poised for activity. Although challenges remain, strong total return performance looks set to be driven by the supply/demand dynamics in multiple sectors, most noticeably residential, alongside the UK’s enduring appeal, asset repricing and an improving economic backdrop.