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Brexit fails to massively slowdown the demand for London office building

New London office building hit a post Brexit referendum high, according to the Deloitte Real Estate London Office Crane Survey.

The report, which is a key barometer looking at construction in London, revealed that with 13.2m sq ft of space under construction, new office building in central London reached a three year high — up 12% compared to six months ago.

“London’s office market remains resilient in the face of uncertainty as we witness an encouraging increase in new construction starts,” said Mike Cracknell, director at Deloitte Real Estate, who added, “this is testament to developers’ continued confidence in London’s office leasing market long term.”

There were some other notable upticks in the London office building sector, such as 55% of space under construction is already let. Financial Services are pre-letting more space and technology, media and telecoms (TMT) also further increased its share, from 29% to 35%, said Deloitte.

However, Deloitte warned that “even though there was an up-tick in office construction levels, the overall pipeline under construction and proposed schemes declined by 23% over the past two years.

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