17% Fall In London Construction

Office construction in London has fallen 17% in the six months to September, according to Deloitte.

According to the firm's latest London Crane Survey, office construction in the capital is down for the third year in a row, despite 22 new schemes starting in the six months to September 2014.

The figures also show however, that completion of projects reached a ten-year high during the same period and that less than half of the newly created spaces are available to rent, with a majority being leased prior to work being completed.


Ten new buildings are currently under construction in the City, accounting for 54 percent of the capital's total construction.

Deloitte Real Estate head of City leasing Steve Johns said: "With occupier demand expected to remain strong, we foresee further increases in pre-letting activity and demand for the best space to exceed new supply for the next three years.

"Nevertheless, with over 5m sq ft now being demolished – a rise of 18 per cent in six months – developers are racing against the clock to deliver buildings while new supply remains relatively low."

(IT)