London office construction falls 27% amid exodus fears
London could face a further slowdown in office developments as firms reconsider the amount of space needed to house UK staff after Brexit, with new figures showing construction activity slowing in the capital.
The latest survey by Deloitte shows that the total office space currently under construction fell by 6% over the past six months to 13.9 million square feet, down from 14.8m square feet recorded in the last poll.
It found that total construction in the West End fell 27% to 1.2m square feet compared with six months earlier, marking its third consecutive fall, while the City saw a 7% drop to 8.2m square feet over the same period.
Deloitte said the volume of City construction was due in part to a number of large projects coming to a close, adding that 10 new schemes were being developed.
Nigel Shilton, managing partner at Deloitte Real Estate, said: "The decrease in overall volume of space under construction could suggest that developers have slowed down, yet this is more a result of timing and two years of elevated levels of construction completing rather than developers holding off."