Private Equity Reclaims its Place in UK Real Estate with £1.3bn in Active Bids

Posted by Colliers on 21st April 2025 -

Private equity continues to assert its presence in the London capital market, with over £1.3 billion in active bids tracked from Q4 2024 to the end of Q1 2025.

This uptick in activity reflects a marked shift in investment patterns, with private equity now accounting for 19% of total capital turnover in 2024, up from just 4% in 2022. Despite a broader market slowdown, the growth in private equity's market share signals a confident return to the market — with the capital and conviction to drive strategic acquisitions according to latest data from Colliers.

According to Christian Capocci, Associate Director in Colliers’ Capital Markets team, “The data we’re seeing highlights a clear drive in private equity’s role in the UK real estate market. Despite the overall market slowdown, private equity has been remarkably resilient and is increasingly targeting larger, more strategic deals. The fact that private equity accounted for 19% of London capital turnover in 2024 and shows limited signs of slowing as we enter 2025 is a key market indicator that these investors see intrinsic untapped value in the London market supported by occupational fundamentals.” 

While private equity has not yet surpassed private capital and PropCos in overall market share (which accounted for 38% and 23% of capital turnover in 2024, respectively), its purchasing power is undeniable. In 2024, the average lot size for private equity transactions was £78 million — more than double the average lot size for private capital (£37.5 million) and PropCos (£29.7 million). By Q4, this figure rose to over £90 million, highlighting private equity’s focus on institutional-grade assets.

Private equity's increased presence is also reflected in the growing number of deals in the pipeline. “At the end of Q1 2025, we tracked £1.27 billion under offer, with 19% of that figure driven by private equity,” added Capocci. “Bidding activity is strong, and we are seeing a clear trend towards well-targeted investments that involve repositioning opportunities, which demonstrates the strategic foresight of these investors.”

A changing landscape for investment
The rise of private equity in the UK real estate market signals changing dynamics for landlords and investors alike. “For vendors, this uptick in private equity activity means increased competition for assets, particularly in the mid-to-upper market segments,” said Capocci. “For investors, we could see pricing tension re-emerge faster than expected, especially in sub-sectors where private equity is actively pursuing growth.”

What this means for the market
For capital markets professionals, the message is clear: the market is rebalancing. While private equity is not yet dominating the market in terms of volume, it is becoming an influential force, with larger deals and a more strategic approach.

"The market is no longer waiting for a rebound. In fact, in some corners, it’s already happening,” concluded Capocci. “Private equity is setting the pace, with larger lot sizes, more targeted acquisitions, and an increasing focus on long-term value creation.”