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Sector trends

Central London property: why the most cyclical sector of all looks primed for an upswing

Investing in Central London offices demands precise timing; errors could incur hefty losses, while successful ventures often outperform other commercial sectors.

Why timing is crucial for investors

Historical trends indicate that although Central London office values have experienced volatility - doubling in the late 1980s, crashing in the early 1990s, and rebounding strongly thereafter - they have consistently outperformed other sectors during recovery periods.

As of the most recent downcycle, values have declined but show potential for recovery due to stable rental growth and a lack of overdevelopment.

For key takeaways on the performance of Central London offices, current market conditions, and rental growth and yield, download the latest Real Estate Digest.

 

Read issue 120 of the UK Real Estate Digest 2025

This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of NatWest Group, as of this date and are subject to change without notice. Copyright © NatWest Group. All rights reserved.

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