Kent’s Property Market Resilient Against The Headwinds

Major investments in logistics and distribution space and a single acquisition of 500,000 sq ft of commercial office space in Kent are evidence of the county’s popularity with investors and developers over the last 12 months.

This year’s Kent Property Market Report is forecasting positive growth in some property sectors, and the economic headwinds calming. Now in its 34th year, the Kent Property Market Report is produced by Caxtons Property Consultants and Kent County Council.

Following Panattoni’s success in letting all of the 90-acre logistics park at Aylesford, and completing the county’s largest speculative development at Panattoni Park Sittingbourne, the company has made another major investment in Kent by purchasing the former 70-acre Aliaxis Marley site at Lenham, offering an estimated 1,000,000 sq ft of development opportunity.

This year’s keynote speaker was Harry Trahair, Asset Manager at London-based Praxis Group. He outlined the rationale for Praxis’ acquisition of 14 existing office buildings, offering a combined 500,000 sq ft (46,452 sqm) of commercial space at Kings Hill and the biggest deal in the office sector for over a decade. The move signals a recognition of the changing office marketplace, with Praxis expected to bring forward plans to refurbish some of the office space to meet the current demand and to redevelop others for residential use.

Mark Coxon, Director of Commercial Agency, Caxtons, said: “Once again the Kent property market is showing its resilience as it continues to be a bellwether for the national and local economy. Reflecting the strength of online retail, the logistics and distribution sector are continuing to see good levels of demand and occupancy, and the retail and office sectors have performed better than in recent years.

“Predicting the future fortunes of the property market remain difficult, made all the harder by the wait for the Chancellor’s Budget on 26 November. With the Chancellor’s need to raise money, there is a concern the property market may be in the crosshairs. Nonetheless, the industry remains cautiously positive that Kent’s resilience will shine through yet again.”

The performance must be viewed against the backdrop of interest rates being down slightly on this time last year, but inflation has doubled to 4% and the Bank of England is predicting it won’t be back to 2% until Q2 in 2027.

Cllr Paul King, KCC’s Cabinet Member for Economic Development and Coastal Regeneration, said: “The property industry is vital for the county, helping to create and promote a vibrant economy and place to live, work and invest in.

“Kent’s strategic location between London and continental Europe, coupled with the UK’s only high-speed rail link, makes it a natural gateway for international travel. This connectivity stands up to scrutiny, which is why we continue to advocate for the reinstatement of European train services stopping at Ashford and Ebbsfleet. Restoring these connections would not only strengthen Kent’s transport infrastructure but also provide a significant boost to the property sector and encourage businesses to relocate from London and beyond.”

In terms of the performance of key property sectors. the industrial and logistics sector continues to do well, underpinned by supply chain resilience, automation, sustainability and a shortage of high-quality supply in some areas.

Kent now hosts some of the South East’s largest ‘big box’ units, and major schemes continue to be built, including at TN2 Gateway, Tunbridge Wells; Swanley Distribution Link; and a range of smaller schemes such as Gallagher Property’s 200,000 sq ft industrial development in Paddock Wood.

The report highlights the relatively good performance of the retail sector, with Kent’s prime retail destination Bluewater continuing to outperform national benchmarks, and Ashford Designer Outlet celebrating its 25th birthday and a record-breaking 2024 with new stores opening.

The retail sector continues to adapt, with food stores and retail parks leading performance. Retail parks have undergone significant reshaping with former Homebase sites being re-occupied by The Range and B&M or expanding, as well as welcoming new offerings and drive-thru stores.

On the high street it’s been a year of mixed fortunes with closures, new occupiers and creative adaptations. Landlords are increasingly splitting units or embracing artisanal traders to sustain vibrancy. Despite pressures, Canterbury and Ashford recorded rental growth of 17% and 23% respectively.

Shopping centres are also being re-invented, with Chatham’s Pentagon Centre pivoting to health and office use, while Tunbridge Wells Borough Council is committing £68m to redevelop Royal Victoria Place with the addition of leisure-led offers.

Demand for office space in Kent has been concentrated on Grade A, sustainable space, reflected in a record rent of mid-£30s per sq ft achieved at One Suffolk Way in Sevenoaks. Nonetheless, take-up is sporadic, with many firms consolidating or shifting to serviced offices or spaces within their industrial/logistics buildings.

Serviced offices, particularly IWG schemes at Kings Hill and Crossways, show low vacancies, while rents at Crossways have climbed to £30 per sq ft, reflecting ongoing demand for quality, flexible workspace shaped by continued hybrid working.

The county’s science and innovation hubs continue to attract new companies and expand. Kent Science Park has been recognised as the best life science research facility in the South East, and Discovery Park in Sandwich has doubled its scientific community, blending R&D with advanced manufacturing.

The launch of the 2025 Kent Property Market Report was supported by Clear Insurance Management, DHA, Hollaway Studio, MHA, and Thomson Snell & Passmore, and endorsed by the Royal Institution of Chartered Surveyors (RICS). It was unveiled on 5 November to an audience of more than 225 property industry guests at the Ashford International Hotel.

A copy of the report is available via www.kentpropertymarket.com.