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.
For the second consecutive year the Central London occupational market defied expectations despite the ongoing political uncertainty. Take-up in Q4 reached nearly 3.4 million sq ft, bringing the annual 2018 total to 12.5 million sq ft, which was 6% ahead of the five-year average.
Despite the strong leasing activity, the volume of space under offer remained stable at 3.0 million sq ft heading into 2019. Nearly half of this was for pre-let space, demonstrating how occupiers are being forced to look further out to secure the right space.
Supply increased by 6% quarter on quarter to 13.2 million sq ft, although this followed five prior quarters of continued decline. The development pipeline continues to be eroded by pre-letting activity, particularly in non-core locations.
2018 investment volumes stood at £19.5 billion, marginally below the level recorded in 2017 (£19.9 billion) but 22% above the 2016 volumes of £16.1 billion. Asian capital continued to target London, accounting for 39% of total investment volumes in 2018.
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