- The UK-listed real estate services sector is worth £23.4bn
- Mixed performance during property downturn
One of the biggest listed real estate companies in the UK is not a real estate investment trust (Reit), nor is it a housebuilder. The FTSE 100 business does not own any buildings, has never built any buildings, and is worth just shy of £4bn. It is, of course, Rightmove (RMV), and it is one of many UK-listed property services companies. These businesses are not directly engaged in real estate transactions but still benefit from them.
The sub-sector's collective market cap is around £23.4bn. It represents a big chunk of the UK-listed property world, and competition among the major players is fierce. Rightmove had been the second-largest UK-listed property company until it lost around £1bn in value last month after its much smaller rival OnTheMarket (OTM) revealed it had accepted a £100mn takeover offer from property data company CoStar (US:CSGP). OTM’s move is an audacious bid to become the UK’s biggest online property portal, and as such it is specifically targeting Rightmove.