Private Equity Reclaims Its Place in UK Real Estate with £1.3bn in Active Bids
Colliers data shows private equity returning strongly to the London capital market, with more than £1.3 billion of active bids tracked between Q4 2024 and the end of Q1 2025.
Private equity accounted for 19% of London capital turnover in 2024, up from just 4% in 2022, despite a wider market slowdown. Christian Capocci, Associate Director in Colliers' Capital Markets team, says investors in this group have proved resilient and are increasingly pursuing larger, strategic deals, seeing untapped value in London underpinned by occupier fundamentals.
Private capital and property companies still hold larger shares of turnover, at 38% and 23% respectively in 2024. However, private equity's buying power stands out: its average lot size in 2024 was £78 million, more than double that of private capital (£37.5 million) and property companies (£29.7 million), rising to over £90 million in Q4 as it targeted institutional-grade assets.
At the end of Q1 2025, Colliers tracked £1.27 billion of deals under offer, 19% of which involved private equity. Capocci notes strong bidding and a focus on well-targeted acquisitions with repositioning potential.
For vendors, this means more competition for assets, particularly in the mid-to-upper market. For investors, pricing tension could return sooner than expected in sub-sectors where private equity is active. Colliers concludes that the market is rebalancing, with private equity becoming an influential force through larger lot sizes, targeted acquisitions and a focus on long-term value, and suggests that in some areas a recovery is already under way.
