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Central London Marketbeat - Q2 2019

Hayley Armstrong

Senior Research Analyst

Phone +44 203 296 2069

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Central London Marketbeat provides an overview of the occupational and investment markets across Central London on a quarterly basis. It summarises the property market fundamentals, such as take-up, supply and rents in the main markets - City, West End and East London.


Central London leasing volumes increased 27% over the second quarter of 2019 to reach 3.1 million sq ft. This brought H1 leasing volumes to 5.6 million sq ft, in line with the corresponding period in 2018 and 4% above the five-year H1 average of 5.4 million sq ft.


Supply levels fell for the second consecutive quarter to stand at 12.3 million sq ft, which reflects a vacancy rate of just 4.6%. This was driven by declines in supply in the East London submarket, whilst the City and West End supply volumes remained relatively stable.

Under offer

The volume of space under offer continued to rise, increasing 9% over the quarter to reach 3.4 million sq ft at the end of June. Total space under offer is now 22% ahead of the five-year quarterly average.

Investment volumes

Central London investment volumes recovered slightly from the slow start in Q1 to reach £3.1 billion in Q2. This brought the total for H1 to £5.1 billion, but volumes remained below the amount transacted during the same period in 2018 and the five-year H1 average. North American buyers were the most active in the second quarter of 2019, accounting for over half of investment volumes across Central London.


Despite increased likelihood of a ‘no deal’ Brexit, the London real estate market has not displayed the symptoms traditionally associated with uncertainty; values have held up, demand is solid and supply is trending downwards. Occupiers and investors appear to have priced in a ‘no deal’ Brexit; indicators suggest that the London real estate market will remain robust.

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