The number of new real estate business openings increased by 31% in Q1 2025, reaching 3,785, compared to 2,880 in Q4 2025, according to research from Cynergy Bank.

Cynergy Bank said the increase signals “remarkable resilience and return of confidence” in property markets despite broader economic headwinds.

The increase made the UK real estate sector the top performer for business creation in Q1, with the highest ratio of start-ups compared to closures across all industries.

Real estate business start-ups in the quarter significantly outpaced the 2,645 closures.

The data found the average turnover of firms shutting their doors reached its highest level since records began in 2017, at £329,000, with the total turnover of businesses closing or moving overseas hitting £27.4bn in Q1, £5.1bn more than this time last year.

Real estate outperformed other growing sectors such as education, finance and insurance, and health and social care. In contrast, in the agricultural sector, the research found that fewer than half of shutting businesses are being replaced.

Cynergy Bank chief executive Nick Fahy said: “The real estate sector’s outstanding performance highlights its vital role as a driver of UK economic resilience.

“With significantly more businesses opening than closing, the property sector continues to demonstrate adaptability and entrepreneurial spirit in a challenging market, despite continuing challenges like April’s National Insurance hikes” for employers.