New central London office construction falls 50% in six months: Deloitte By

0
13


LONDON () – Construction of new office space in central London fell by 50% in the six months to the end of September as the impact of the COVID-19 pandemic on major cities kept developers away, according to a survey published on Monday.

The amount of new space under construction plunged to 2.6 million square feet, taking volumes back to their historical averages after a pre-pandemic boom, Deloitte Real Estate’s London Office Crane Survey showed.

The survey also showed a higher-than-average 40% of new construction was pre-let, signalling less speculative building.

At least six speculative schemes were put entirely on hold pending more clarity, with many more postponed until 2021, Deloitte said.

Developers reported that weak tenant demand was the major obstacle to starting any new project after the pandemic forced many people to work from home, leaving parts of the capital almost deserted.

The shift to working from home has prompted many companies to consider a longer-term, more flexible approach to office attendance, prompting questions over future demand for tower blocks in the capital.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.