<p xmlns="http://www.w3.org/1999/xhtml">
Office construction in UK regions has fallen to its lowest ...

<p xmlns="http://www.w3.org/1999/xhtml">
Office construction in UK regions has fallen to its lowest level in at least 20 years,<i xmlns="http://www.w3.org/1999/xhtml"> </i>according to data from <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.costargroup.com%2F&amp;esheet=54579840&amp;newsitemid=20260731928780&amp;lan=en-US&amp;anchor=CoStar&amp;index=1&amp;md5=e2ce712dcdd1ac2d053aa654eb00cd05" shape="rect">CoStar</a>, a global leading provider of online real estate marketplaces, information and analytics in the property markets.

</p><p xmlns="http://www.w3.org/1999/xhtml" id="news-body-cta">This press release features multimedia. View the full release here: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260731928780/en/" rel="nofollow">https://www.businesswire.com/news/home/20260731928780/en/</a></p><div xmlns="http://www.w3.org/1999/xhtml" id="bwbodyimg" style="width: 480px; float:left; padding-left:0px; padding-right:20px; padding-top:0px; padding-bottom:0px;"><img xmlns="http://www.w3.org/1999/xhtml" src="https://mms.businesswire.com/media/20260731928780/en/2864127/4/UK-office-construction.jpg" alt="UK office construction starts have fallen to a record low"></img><p xmlns="http://www.w3.org/1999/xhtml" style="font-size:85%;">UK office construction starts have fallen to a record low</p></div><p xmlns="http://www.w3.org/1999/xhtml">
Preliminary data for Q2 2026 shows annual office construction starts fell below 5 million square feet for the first time since at least 2010, far below the 16 million square feet recorded in 2019, when conditions were more supportive.

</p><p xmlns="http://www.w3.org/1999/xhtml">
"The fall in construction starts was sharp across the UK regions, at almost 59% below the 10-year average, while London was 57% below average," said Patrick Scanlon, senior director of market analytics at CoStar Europe. "Rising rents for the best London spaces have strengthened the case for speculative office development, especially in central areas with strong amenity and connectivity."

</p><p xmlns="http://www.w3.org/1999/xhtml">
Despite fewer starts, total UK office space under construction rose in Q2 2026, supported by low completion levels in the first half of the year.

</p><p xmlns="http://www.w3.org/1999/xhtml">
"Construction levels are expected to resume their downward trend at a faster pace in the second half," said Scanlon. "Nearly one-third of space under construction is due to complete by year-end, likely far exceeding new starts over the same period."

</p><p xmlns="http://www.w3.org/1999/xhtml">
The gap between London and the UK regions in total construction volumes is widening. In 2021, London accounted for around half of all space under construction; by mid-2026, that had risen to almost three-quarters, one of the highest ratios on record. Regional construction has fallen below 6 million square feet, equal to 0.5% of total office stock, compared with 3.7% in London.

</p><p xmlns="http://www.w3.org/1999/xhtml">
The full analysis can be found <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.costar.com%2Farticle%2F1139363637%2Fuk-office-construction-starts-fall-to-a-record-low-as-development-focuses-on-london&amp;esheet=54579840&amp;newsitemid=20260731928780&amp;lan=en-US&amp;anchor=here&amp;index=2&amp;md5=0e41048a9887835207b5829cdea81d28" shape="rect">here</a>.

</p><p xmlns="http://www.w3.org/1999/xhtml">
For more information about the company and its products and services, please visit <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.costargroup.com&amp;esheet=54579840&amp;newsitemid=20260731928780&amp;lan=en-US&amp;anchor=www.costargroup.com&amp;index=3&amp;md5=584f9616adc2eea24128ccb94eb93514" shape="rect">www.costargroup.com</a>.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml"><span xmlns="http://www.w3.org/1999/xhtml" class="bwuline">About CoStar Group</span></b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
CoStar Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/CSGP">CSGP</a>) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

</p><p xmlns="http://www.w3.org/1999/xhtml">
CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.

</p><p xmlns="http://www.w3.org/1999/xhtml">
CoStar Group’s websites attracted over 118 million average monthly unique visitors in the second quarter of 2026, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fnam04.safelinks.protection.outlook.com%2F%3Furl%3Dhttp%253A%252F%252Fwww.costargroup.com%252F%26data%3D05%257C02%257Ckcapova%2540str.com%257C5c7d5fa16d1f492b629108dd711cdcdd%257C9a64e7ca363f441c9aa74f85977c09f1%257C0%257C0%257C638791090977538834%257CUnknown%257CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%253D%253D%257C0%257C%257C%257C%26sdata%3DzTGAkD6jkqwLHG5sxi4cxjyWf4Kr6%252Fa1GJmsgxQJhCo%253D%26reserved%3D0&amp;esheet=54579840&amp;newsitemid=20260731928780&amp;lan=en-US&amp;anchor=CoStarGroup.com&amp;index=4&amp;md5=d9341f2b1abffbfe904b6ea599ebd602" shape="rect">CoStarGroup.com</a>.

</p><p xmlns="http://www.w3.org/1999/xhtml"><img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260731928780r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img><span xmlns="http://www.w3.org/1999/xhtml" class="bwct31415"></span></p><p xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink"><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-phrase">View source version on businesswire.com: </span><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-link"><a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260731928780/en/" rel="nofollow">https://www.businesswire.com/news/home/20260731928780/en/</a></span></p><p xmlns="http://www.w3.org/1999/xhtml">
Karolina Capova
<br xmlns="http://www.w3.org/1999/xhtml"></br>Senior Media Relations Specialist
<br xmlns="http://www.w3.org/1999/xhtml"></br><a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:kcapova@costar.com" shape="rect">kcapova@costar.com</a>

</p>

CSGP

CoStar Data Shows London Dominates UK Office Development as Regional Pipeline Hits 20-Year Low

CoStar UK office data shows starts slump; London share rises, regional gap widens

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>&lt;p xmlns=&quot;http://www.w3.org/1999/xhtml&quot;&gt;
Office construction in UK regions has fallen to its lowest ...</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>CoStar reports UK Q2 2026 office-construction starts fell below 5 million sq ft, a record low. Regional starts were ~59% below the 10-year average, with London ~57% below. Total construction rose on slow completions, and London’s share climbed toward 75% by mid-2026, signaling a London-centric data demand trend that could influence CoStar’s CRE analytics usage and client dynamics.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>UK office construction starts fell to a record low in Q2 2026, per CoStar.</li><li>Regional starts were about 59% below the 10-year average; London 57% below.</li><li>Total space under construction rose due to slow completions, with about one-third finishing by year-end.</li><li>London&#039;s share of UK construction rose to nearly 75% by mid-2026.</li><li>CoStar provides market data for CRE. London-focused signals may influence demand.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>CoStar Group (CSGP)</strong>: Source of the UK office construction data; primary driver of the press release; potential data-revenue implications.</li><li><strong>Matterport (MTTR)</strong>: Part of CoStar&#039;s brand portfolio; 3D spatial data tech could cross-sell to CRE clients beyond this release.</li></ul>
  </section>

  <section data-block="category">
    <h3>Industry News</h3>
    <p>Industry News. The report provides sector data on UK CRE activity and highlights London concentration, relevant for CRE clients and data demand trends.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>London concentration may boost demand for CoStar&#039;s London-focused datasets.</li><li>Regional weakness could dampen subscriptions tied to non-London markets.</li><li>Speculative development in central London may lift related analytics usage.</li><li>Slower UK starts with delayed completions may extend data demand tail.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Q2 2026 UK office construction starts below 5 million sq ft.</li><li>2019 starts were 16 million sq ft.</li><li>Region starts ~59% below 10-year average; London ~57% below.</li><li>London&#039;s share near 75% of total construction by mid-2026.</li><li>Regional construction under 6 million sq ft, about 0.5% of total office stock.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>CSGP could see modest near-term upside from London-focused CRE data demand over the next few quarters.</p>
  </section>
</section>


<article>
  <header>
    <h1>CoStar Data Shows London Dominates UK Office Development as Regional Pipeline Hits 20-Year Low</h1>
  </header>

  <section>
    <p>Preliminary data for Q2 2026 shows annual office construction starts fell <strong>below 5 million square feet</strong> for the first time since at least 2010, far below the <strong>16 million square feet</strong> recorded in 2019, when conditions were more supportive. London’s central market is strengthening the case for speculative office development as the regional pipeline shrinks, according to data from CoStar Group (NASDAQ: <strong>CSGP</strong>).</p>
    <p>This press release features multimedia. View the full release here: <a href="https://www.businesswire.com/news/home/20260731928780/en/" rel="nofollow">https://www.businesswire.com/news/home/20260731928780/en/</a></p>
    <figure>
      <img src="https://mms.businesswire.com/media/20260731928780/en/2864127/4/UK-office-construction.jpg" alt="UK office construction starts have fallen to a record low" />
      <figcaption>UK office construction starts have fallen to a record low</figcaption>
    </figure>
  </section>

  <section id="findings">
    <h2>Key UK office construction trends and London dominance</h2>
    <ul>
      <li><strong>Q2 2026</strong> data show annual office construction starts fell <strong>below 5 million square feet</strong> for the first time since at least 2010, far below the <strong>16 million square feet</strong> recorded in 2019, when conditions were more supportive.</li>
      <li>"The fall in construction starts was sharp across the UK regions, at almost 59% below the 10-year average, while London was 57% below average," said Patrick Scanlon, senior director of market analytics at CoStar Europe. "Rising rents for the best London spaces have strengthened the case for speculative office development, especially in central areas with strong amenity and connectivity."</li>
      <li>Despite fewer starts, total UK office space under construction rose in Q2 2026, supported by low completion levels in the first half of the year.</li>
      <li>"Construction levels are expected to resume their downward trend at a faster pace in the second half," said Scanlon. "Nearly one-third of space under construction is due to complete by year-end, likely far exceeding new starts over the same period."</li>
      <li>The gap between London and the UK regions in total construction volumes is widening. In 2021, London accounted for around half of all space under construction; by mid-2026, that had risen to <em>almost three-quarters</em>, one of the highest ratios on record.</li>
      <li>Regional construction has fallen below <strong>6 million square feet</strong>, equal to <strong>0.5%</strong> of total office stock, compared with <strong>3.7%</strong> in London.</li>
      <li>The full analysis can be found <a href="https://www.costar.com/article/1139363637/uk-office-construction-starts-fall-to-a-record-low-as-development-focuses-on-london" rel="nofollow">here</a>.</li>
    </ul>
  </section>

  <section id="about">
    <h2>About CoStar Group</h2>
    <p>CoStar Group (NASDAQ: <strong>CSGP</strong>) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.</p>
    <p>CoStar Group’s major brands include CoStar, LoopNet, Apartments.com, Homes.com, Domain, Matterport, STR, Ten-X, and OnTheMarket. CoStar Group’s websites attracted over <strong>118 million</strong> average monthly unique visitors in the second quarter of 2026, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence.</p>
  </section>

  <section id="contact">
    <p>For more information about the company and its products and services, please visit <a href="http://www.costargroup.com" rel="nofollow">www.costargroup.com</a>.</p>
    <p><strong>Karolina Capova</strong><br/>Senior Media Relations Specialist<br/><a href="mailto:kcapova@costar.com" rel="nofollow">kcapova@costar.com</a></p>
  </section>
</article>

CoStar reports UK Q2 2026 office-construction starts fell below 5 million sq ft, a record low. Regional starts were ~59% below the 10-year average, with London ~57% below. Total construction rose on slow completions, and London’s share climbed toward 75% by mid-2026, signaling a London-centric data demand trend that could influence CoStar’s CRE analytics usage and client dynamics.

News insight

CoStar Data Shows London Dominates UK Office Development as Regional Pipeline Hits 20-Year Low

AI summary

Sentiment rationale

Key facts

Industry News