New office construction in London drops by half
New office starts in London fell by half in the six months to 30 September, Deloitte Real Estate’s latest crane survey has found.
The specialist property consultant found that just 240,000m² foot of new office space construction started across the capital in the period – 50 per cent less than between October 2019 and March 2020 – and described the London office real estate market as facing a ‘state of suspension’.
The company analysed data and carried out a poll of the largest developers to gather its conclusions.
It found that the total office space under construction in central London stood at 1.4 million m². This is almost the same as six months earlier, largely because developments have been slow to complete since the pandemic hit.
The firm predicted that fewer new construction starts were likely to take place in the short to medium term as a result of weaker occupier demand, a lack of development finance and the economic downturn. Developers and investors were also wary of committing to new projects because of the popularity for continued home working among the UK workforce.