Press Release

CBRE’s Multifamily Index Reports High Occupancy as the Sector Recovers

November 13, 2025

View All Press Releases
cbres-multifamily-index-reports-high-occupancy-as-the-sector-recovers

Media Contact

Charlotte Kenna

Director

Photo of charlotte-kenna

Media Contact

Hannah Smith

PR Manager

Photo of hannah-smith-01

Global real estate advisor, CBRE, has released its UK Multifamily Index, with its findings showing that both rental and capital values have gradually risen over a six-month period, in a sign of recovery for the sector. 

A 1% increase in capital values was recorded for the six months to September 2025 and this contributed to a total return of 3.2% over this period, with income return contributing 2.2% to performance.

The rise in capital values was primarily driven by rental value growth of 1.1%, while capitalisation rates (investment yields) showed little movement, increasing by just one basis point since March. Gross income rose by 3.3% over the last six months. This was supported by an increase in occupancy during this period. The overall occupancy rate for schemes in the index was 97% at September 2025.

Multifamily assets located in London exhibited similar performance over the last six months to those in the rest of the UK. Capital values rose by 1% in both cases, while gross income growth for the rest of the UK was slightly stronger, at 3.4% compared with 3.1% for London.

These results demonstrate the continued resilience of the UK multifamily sector.  While investment activity remains subdued due to wider viability challenges and uncertainty around the upcoming Autumn Budget, investment volumes are 14% higher as at Q3 2025 compared to the same time last year.  In addition, the investment pipeline looks healthy with over £3.0bn worth of opportunities currently under offer, the highest it's been for some time.
James HindeSenior Director, Living Sector Valuations Team, CBRE
Person Image
Our latest index marks the first moment that CBRE has reported on total returns and net income returns for UK multifamily schemes. This expansion to our index enables investors to see the contribution of income to investment performance in the sector. It is also promising to see renewed growth in capital values over the last twelve months, which should prompt cautious optimism from investors as the multifamily sector recovers.
Steven DevaneySenior Director, UK Research, CBRE
Person Image
Method

The CBRE UK Multifamily Index: The 2025 results are based on a sample of 64 stabilised schemes comprising around 13,000 residential units as of September 2025. The schemes had a capital value of c. £4.4bn at this date.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.co.uk.