Central London office values continue to growDecember 13th, 2012 Category: Building Management
The office market in central London is continuing to perform strongly, new figures have revealed.
According to CB Richard Ellis (CBRE), the value of offices in the heart of the capital went up by one per cent during November 2012.
The organisation described this as a "healthy" and "robust" upturn, particularly as it came on the back of a 0.9 per cent increase in values throughout October.
CBRE noted that the offices sub-market in the West End has been doing particularly well in the last few months.
Figures also showed that the upturn in central London is not reflective of the state of affairs across Britain as a whole.
Indeed, the value of commercial property on a national scale slumped by 0.2 per cent last month, following a 0.1 per cent drop in October.
Meanwhile, the value of UK offices went up by just 0.3 per cent, indicating the extent to which central London is supporting national figures – and in some cases, distorting them.
Despite the weak performance of the wider commercial property market throughout October and November, CBRE is confident that investors will continue to pour money into the British market.
So with London leading the way, businesses based in the capital could be well-placed to thrive in the coming months as Britain aims to build a sustainable economic recovery.
Leslie Schroeder, senior analyst at the group, commented: "Although November figures were relatively flat, investors are clearly still viewing the UK as a safe haven, when compared to the rest of Europe."
He pointed out that Britain has seen a higher level of investment turnover during 2012 than any other European market.
Nevertheless, he acknowledged that much of this activity has been concentrated in central London, with foreign investors in particular proving keen to establish a presence in this location.
Mr Schroeder said during the year to date, values in the central London office sector have gone up by 3.3 per cent.
This, he stated, has coincided with a 10.9 per cent capital decline in the rest of the UK office market.