JP Morgan reckons the UK property market is approaching a long-awaited turning point, with investor sentiment set to improve heading into 2026.
Analyst Neil Green, in a note, said expectations for the sector remain subdued ahead of the first-half 2026 reporting season in November, but noted signs of “increasingly encouraging” newsflow.
While capital growth slowed between March and September and transaction activity was muted by macro uncertainty, Green said listed property shares have already begun to recover from their lows, with SEGRO PLC (LSE:SGRO) up around 8%. He pointed to recent updates from Land Securities Group PLC (LSE:LAND), Grainger Plc (LSE:GRI), and the self-storage sector as evidence of stabilising conditions.
JP Morgan estimates around 28% upside potential from current share prices and believes the sector will “move quickly on re-engagement.”
The bank has “high conviction” on Great Portland Estates (LSE:GPOR) and Big Yellow Group PLC (LSE:BYG), while taking a more neutral stance on Land Securities and British Land. Industrial-focused REITs such as SEGRO, Tritax Big Box REIT PLC (LSE:BBOX), and LMP are viewed as best positioned for the next phase of growth.