Prime property yields by sector
Where UK prime yields sit across the asset classes we stabilise, the benchmark a stabilised valuation and the refinance are priced against.
Prime yields vary widely by sector, from the keenest living and logistics assets to higher-yielding retail and operational sectors. The sharper the yield, the more a given stabilised income is worth, and the stronger the refinance beneath a stabilisation bridge. The keenest priced sector below is Purpose-built student accommodation (PBSA) at 4.25% (Knight Frank, Nov 2025).
At a glance
- Purpose-built student accommodation (PBSA)4.25% (Knight Frank, Nov 2025)
- Build-to-rent (BTR)4.25% (Knight Frank, Nov 2025)
- Co-living4.25% (Knight Frank, Nov 2025)
- Multi-unit residential blocks4.25% (Knight Frank, Nov 2025)
- Hotels and aparthotels4.5% (Knight Frank, Oct 2025)
- Roadside and leisure4.79% (Savills, 2025)
- As at2025/26
Prime yields by sector
A net initial yield is the stabilised income as a percentage of value, so a sharper yield means a higher value for the same income. Lenders and investors price a stabilised asset against the prime yield for its sector and tier, which is why the exit on a stabilisation bridge is so sensitive to hitting the target income.
| Sector | Prime net initial yield |
|---|---|
| Purpose-built student accommodation (PBSA) | 4.25% |
| Build-to-rent (BTR) | 4.25% |
| Co-living | 4.25% |
| Multi-unit residential blocks | 4.25% |
| Hotels and aparthotels | 4.5% |
| Roadside and leisure | 4.79% |
| Industrial and logistics | 5% |
| Self-storage | 5% |
| Offices | 5.25% |
| Mixed-use schemes | 5.75% |
| Care homes | 5.75% |
| Retail and shopping | 6.2% |
Investment volume by sector
Where the capital is flowing, a read on the depth of the exit market in each sector.
| Sector | Annual investment volume |
|---|---|
| Serviced accommodation and aparthotels | £660m |
| Care homes | £12bn |
| Offices | £9.76bn |
| Industrial and logistics | £8.7bn |
| Retail and shopping | £5.83bn |
| Build-to-rent (BTR) | £5.3bn |
| Multi-unit residential blocks | £5.3bn |
| Hotels and aparthotels | £4.9bn |
| Purpose-built student accommodation (PBSA) | £4.3bn |
| Supported and assisted living | £3.2bn |
Sources: CBRE (UK Real Estate Investment Figures Q4 2025, Full-year 2025); Savills (Market in Minutes: UK Commercial, 2025); Knight Frank (Prime Yield Guide (Oct 2025, Nov 2025, Jan 2026), 2025 to 2026); BDLA (Bridging and Development Lenders Association quarterly data, Q3 to Q4 2025); JLL (UK Logistics Big Box Market Dynamics Q4 2025, Q4 2025).
Prime property yields by sector: common questions
What yield does UK property trade at?
It varies sharply by sector. The keenest priced living and logistics assets trade near 4.25% (Knight Frank, Nov 2025), with retail and operational sectors priced higher to reflect risk.
Why does the prime yield matter for stabilisation finance?
Because a stabilisation bridge is repaid by a refinance or sale that is priced on the stabilised income at the prevailing prime yield. A sharper yield means a higher exit value, which supports more leverage during lease-up.
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