Business Outlook 2026

As we reflect on the activity across the market during the past year, we are pleased to present our Business Outlook report for 2026. This report shares our thoughts on the trends shaping our business landscape and recent deal activity, along with our perspective on the market for the year ahead.

In 2025, we celebrated our 90th anniversary and saw record activity across many of our sectors. Based on the transactions conducted by Christie & Co, we positively saw our average price index move forward by 4.2% in the last 12 months.

Key Sector Themes

Whilst the wider commercial property market was generally more subdued in 2025, with lower deal volumes, the sectors in which we operate continued to perform well, and we experienced a very busy year of deal activity. Demand for business property from buyers outstripped supply, and we saw this across the majority of our specialist markets. Businesses adapted to the widespread increase in National Insurance contributions and found cost savings elsewhere to offset this. Whilst business distress has increased since 2024, it hasn’t yet reached the peak level we expect to see.

Deal Completion Insights

Over the past year, deal activity was characterised by surprisingly high volumes, despite transaction times taking
longer than ever before. We completed a significant number of transactions, reflecting strong market confidence and our ability to deliver complex solutions across multiple sectors.

Interestingly, the average time it takes for a transaction to go from instruction to completion has increased, much to the frustration of both buyers and sellers, who are often eager to complete sooner. Enhanced financial, legal, and property due diligence has added complexity, time, and cost to deals.

Over the last 12 months, we completed the sale of over 1,000 properties, with the average timeline from an offer being accepted to completion being around seven months. There is a disparity across our sectors, with the fastest markets being Hospitality and Childcare at around five months, and regulated sectors such as Care, Dental and Pharmacy deals typically taking, on average, between seven and 10 months.

Outlook for 2026

Looking ahead to 2026, we are optimistic about the market outlook for our specialist sectors. The visibility and pipeline of transactions anticipated to happen in the first half of the year are encouraging when compared with the same period a year ago.

There is no doubt that cost pressures will continue to put a strain on businesses, and the economic environment will be more challenging in the year ahead.

As long as demand remains at the current level, with bank funding readily available, then we see no reason why market sentiment shouldn’t be maintained and even surpass the levels seen in 2025.

Darren Bond

Global Managing Director

Interest Rates

We anticipate that interest rates will remain relatively stable over the next 12 months, with the possibility of modest reductions should inflationary pressures continue to ease. The Bank of England has signalled a more cautious approach, prioritising economic stability as the UK navigates post-pandemic recovery and ongoing global uncertainties. This environment should support borrowing and investment activity, encouraging continued market confidence and providing a solid foundation for business growth in our specialist sectors.

Inflation

Inflation in the UK has moderated from recent peaks, with the current level moving closer to the Bank of England’s target range, though it remains above pre-pandemic norms. Over the next 12 months, expectations are for inflationary pressures to gradually subside, particularly if global supply chains continue to recover and energy prices stabilise.

However, the persistence of elevated employment costs and ongoing geopolitical uncertainties may result in inflation fluctuating within a slightly higher band than historical averages. Overall, the outlook points to a slow but steady easing, providing a more predictable environment for businesses and investors as they plan for the year ahead.

Cost Pressures

In the coming 12 months, cost pressures are expected to remain a significant challenge across our markets. Rising employment costs, changes to business rates, and fluctuating energy prices will likely drive operating expenses up. Additionally, regulatory compliance demands and increased due diligence requirements may add to transaction costs. These factors, combined with persistent inflation, could squeeze margins and affect overall profitability, making efficient cost management crucial for sustaining business growth in the year ahead.