London office market has "come through very rapidly"
Property professionals
16th June 2009
The market for office space in London has witnessed a "very rapid" correction, particularly in the City, an expert has suggested.
However, Ed Stansfield, property economist at research consultancy Capital Economics, stated that concerns are "all about income security" in the short-term and this could deter investors.
"We're unlikely to see a rampant investment market any time soon while the economy remains so weak," he added, explaining that only those "in a position to move with minimal debt or cash" are likely to invest in the market at present.
Mr Stansfield's comments come in the wake of a report by DTZ that suggested properties in the city offer a good opportunity for investment, which may be of interest to insurance for buildings customers.
According to the annual Money into Property study, London is the only office market in the world currently providing "fair value", despite prices having dropped 31 per cent from their peak and forecast to fall a further 14 per cent over the next two years.
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