STMENT in London’s sought-after West End office market surged by 30 per cent in the third quarter as an influx of properties became available on the market and demand overseas investors continued to rise.
Research by BNP Paribas Real Estate, the French bank’s property arm, said West End investment rose to £950m in the third quarter compared to £730m in the previous three months.
Elsewhere, investment fell, with a 42 per cent drop in the City and a 15 per cent drop in Midtown. Investment in the Docklands dried out completed in the period.
Paul Henwood of BNP Paribas Real Estate’s investment team said: “Midtown investment transactions were very limited, as the market is seen as growth stock. In addition, the City saw limited new stock offerings due to the summer slowdown and of course, the Olympics.”
Total take-up of space within London rose 6.3 per cent in the third quarter while supply remained stable, rising by only 2.2 per cent from the same period last year.
“Whilst take-up was not spectacular, there are some major deals under offer which should deliver a strong last quarter across central London,” said Dan Bayley, head of central London.