Two-thirds of UK real estate industry staying positive in face of global uncertainty, new report says

The real estate industry is continuing to stay positive despite the Middle East conflict and geopolitical and global economic uncertainty, according to a new report published today.

The second UKREiiF Insights Report, based on a survey by Holistic Insight of 9,626 professionals attending the real estate conference which is being held in Leeds this week, shows almost two thirds of the market remain positive.

In 2025, positive sentiment across the industry sat at 69.5% with this dropping to 63.1% this time around. Negative sentiment has increased from 6.5% to 9.5% and neutral from 24% to 27.4%.

This year, development and funding organisations are the least positive, at 57.7%, falling from 69.4% in 2025.

But development and investment ambitions are strong, with nearly two-thirds, 63.9%, expecting to increase activity over the next 12 months.

Nathan Spencer, managing director of UKREiiF, said: “Positivity has reduced, perhaps unsurprisingly given the current climate, but the market remains committed. From the research, there appears to be more caution, discipline and rigour in selecting opportunities, alongside an ambition and determination to deliver.”

Among industry groups, construction and supply chain businesses are the most optimistic, with 73.8% reporting positive sentiment, up from 67% in 2025.

This is despite 55% of this group also saying they do not expect construction costs to improve over the next 12 months, with lead-in times, margins, materials access and supply chain health all still under pressure.

Residential was identified by almost a fifth as the standout sector opportunity, followed by regeneration and public sector projects.

Reporters from Building Design and sister titles Building and HT will be at this year’s UKREiiF event.