A new report indicates the quantity of new office space under
construction in London has grown from seven
million sq ft in the third quarter of last year to nine million sq
ft in the same period in 2012.

The Drivers Jones Deloitte Crane survey found the amount of new
office space in the City rose 15 per cent, going above four million
sq ft for the first time since the turn of 2009.

Although the deferment of several schemes in 2009 and 2010 means
that completions in the City for 2012 are likely to be at their
lowest for over 25 years (718,000 sq ft), the rise in new
construction this year means completions in 2013 and 2014 are
projected to climb to 1.5 million and 2.3 million sq ft
respectively.

London's West End will experience its largest amount of new
office space built for three years in 2013, with 1.7 million sq ft
of development set for completion.

Anthony Duggan, partner and head of research at Drivers Jonas
Deloitte, said: "It is unlikely that capital spending and hence
demand for real estate will increase substantially in 2013.

"[However], positively for developers of London office space we
expect the demand that will transact to continue to focus on new,
efficient, appropriately specified, attractively designed and
correctly priced real estate.

"We believe the volume of space under construction is
'manageable', i.e. not too high given the weak market conditions.
However, delivering the right product remains key and the market is
likely to be unforgiving for substandard schemes."

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