The Welsh commercial property market has demonstrated its resilience in the first nine months of 2026, registering a substantial increase in investment volumes compared to last year despite an uncertain backdrop, according to new analysis from Knight Frank.
The independent commercial property consultancy found that deals worth a combined £220 million were completed in Wales during the nine months to the beginning of October – up 43% on the same period last year.
Following a strong first half, a further £39 million of transactions were completed in the third quarter, marginally below the £47 million recorded in the same period of 2025. Assets changing hands included Bridgend Industrial Estate, a retail unit on Dunleavy Drive in Cardiff Bay, the Biffa Waste Services facility in Swansea, and Parc Bryn Llywd in Bangor.
Private investors – predominantly property companies (propcos) and high-net-worth individuals – continued to dominate deal activity, accounting for 63% of the market. International investors were the next most active group, with a 16% share of investment, followed closely by institutional buyers at 15%.
With a number of notable transactions progressing and likely to conclude in the final three months of 2026 – including the recently announced deal for No. 1 John Street and the anticipated sale of Cardiff’s Morgan Quarter shopping arcade – Knight Frank said it expects a strong end to the year in Wales.
Gareth Lloyd, capital markets partner at Knight Frank Cardiff, said:
“The last three months may have been a bit quieter, but the wider picture in Wales has been remarkably resilient so far in 2026. Even with geopolitical and interest rates uncertainty lingering in the background, investors remain pragmatic and keen to deploy capital before the end of the year, while pricing has become more established outside London.
“There is a weight of money still eager to find a home, with many investors seeing a generational buying opportunity – prime office headline rents are at an early stage of their upward cycle in Wales, supply is tight, and demand for quality space is pushing values forward. Cardiff’s appeal is also easy to understand: it is a capital city with three major universities, excellent graduate retention and a competitive workforce, and it regularly scores well on quality-of-life measures.
“Private capital remains highly active in Wales, with a mix of high-net-worth individuals, family offices, and propcos picking up where others have left off, while French investors continue to play a prominent role in the market. A number of significant sales are expected to land in the final quarter, reinforcing the momentum we have seen build in recent months and the sense that Wales – and Cardiff, particularly – continues to be an attractive investment proposition.”
