Figures in CBRE’s latest quarterly Central London Property Market Review show that there is currently eleven million square feet of office space under construction in central London.
This figure is a 13% rise from the previous quarter and the highest number since 2008, CBRE said that this was an increase of 139% since the first quarter of 2010, indicating improved developer confidence – with expectations for the volume of space under construction to continue rising as the recovery in the occupier market strengthens and demand for new space increases.
“Our expectation for the second half of 2013 is for more of the same, with the positive employment data and improving business confidence filtering through to the occupier market,” said Adam Hetherington, CBRE central London managing director.
The report also shows that employment in office-based industries in central London has grown by 4.4% in the year to March 2013, the largest annual increase since 2005 – with predictions of another increase in the years to come.
Figures in the latest London Crane Survey by Deloitte Real Estate also support these findings, showing that construction activity across the capital has more than trebled since hitting a low in mid-2010.
Anthony Duggan, partner and head of research at Deloitte Real Estate, said: “The increase in construction and leasing transactions recorded in the latest survey reflects the improving sentiment being felt in the London office market.