The number of new London office construction projects has reached its highest level in 20 years.
According to the Deloitte London Office Crane Survey, 51 schemes got underway during the six months to the end of March 2016, almost double the number of the previous half-year period.
The latest results show that the total volume of office construction in the capital has increased by 28% over the past six months to 14.2 million sq ft, the highest level since the start of 2008.
Refurbishments account for nearly half the space in the new schemes.
Some 38% of the space currently under construction is scheduled to complete over the next 12 months, while 42% of space under construction has already been let to a tenant, reflecting the high demand in the market.
Deloitte Real Estate expects construction volumes to increase to almost 16 million sq ft over the next six months. It predicts rising delivery of space until 2018, when new supply is expected to peak.
The survey measures the volume of office developments – new build or significant office refurbishment – of 10,000 sq ft or more.
