It has been revealed that Canary Wharf is to be expanded even
more, with owner Songbird Estates winning planning permission to
start work on 30 buildings to the east of the area.  The new
plans involve offices in addition to more than 100 new shops,
restaurants and cafes.  The expansion will also include 3,100
new homes, a 420-place primary school, an NHS medical centre and
other parks, public spaces and dock-edge walkways.

The centrepiece for the expansion will be a 57-storey
cylindrical residential skyscraper designed by Herzog & de
Meuron, the Swiss architects responsible for the Tate Modern and
the 'Bird's Nest' Olympic stadium in Beijing.

Work is expected to begin this autumn, with the first buildings
planned to be complete by the time the Crossrail opens in 2018.

The scheme itself is a positive endorsement of London's
financial future, indicating that the high demand for office space
in the capital will continue, and that demand for homes will also
carry on increasing.  It is hope that the office space will
attract a wave of new firms in the booming creative and digital
agency sector.

Sir George Iacobescu, the chairman and chief executive for the
Canary Wharf Group, said:

'This major eastern development of Canary Wharf will reinforce
the district as one of London's most vibrant and mixed-use
commercial and residential districts,'

Shortage of housing in London and across the country continues
to be a major social and political issue, with prices still
soaring.  However, commercial property agents are once again
voicing the potential for a shortage of office space, with
companies across the world keen to snap up space in the
capital.

Figures from Deloitte show that of the top 250 companies in the
world with global or regional HQs in Europe, 100 have them in
London. The next most competitive city amongst firms is Paris, with
just 20.  Deloitte research manager Ann Ibrahim noted that
London was 'by far the leading commercial centre in Europe'.

Some high profile developments in recent years have actually
struggled to attract tenants, an indication that success in the
capital is far from guaranteed. The Shard, for instance, is still
more than fifty per cent empty.

A recent report by property consultants DTZ showed that the
supply of office space in London is now at its lowest levels since
2007.

Anthony Duggan, head of research at Deloitte, said:

'The developers that initiated schemes at the first signs of
economic recovery in 2011-12 are now reaping the rewards as their
schemes complete at a time of reducing availability, increased
tenant demand, and rental growth,'

'It's difficult to see how we will avoid a squeeze on supply
across central London and over the next 12 to 18 months the lack of
choice for some occupiers is likely to drive more pre-letting
activity.

'But our analysis of the longer term outlook for supply suggest
2017 and 2018 could be the years in which delivery starts to
recover.'

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