Through supply chain connections, the commercial real estate sector supported one in every 12 jobs in 2022, according to the British Property Foundation (BPF)
Analysis of the commercial real estate sector carried out by Litchfield for the BPF studied the sector’s economic footprint, jobs and labour market, output and turnover, tax revenue and capital investment across the commercial real estate sector.
Litchfield found that the sector performed well in 2022 despite the continued ramifications of the Covid-19 pandemic, contributing the equivalent of over 7% of total UK gross value added (GVA).
In 2022, the sector delivered £137.5bn in economic output, a 28% increase on the year and 18% higher than pre-pandemic.
The commercial real estate sector also makes a significant contribution to the Exchequer through employment and transaction taxes and business rates – this amounted to £42.3bn in 2022.
Despite the turbulent economic conditions observed throughout 2022, businesses continued to invest heavily- with total capital investment reaching £72.6bn and supporting 454,000 jobs.
Through wider industry connections, the sector supports over 2.6m jobs
Through its supply chain, the commercial real estate sector directly and indirectly supported more than 2.6m jobs in 2022, a 10% increase since 2019 and the equivalent of one in every 12 jobs.
Melanie Leech, chief executive, The British Property Federation comments, “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.
Despite consistent pressures, commercial real estate perseveres
“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.”
You can read more about the UK Commercial Real Estate Economic Footprint here.
