London has cemented its position as the world’s leading destination for investment at a time of heightened geopolitical uncertainty, according to the latest Global Cities Barometer from London Property Alliance. But a deepening shortage of modern office space in central London now risks choking that success, limiting the capital’s ability to convert global investment into jobs, growth and tax revenues.
The capital attracted 86 foreign direct investment projects in the most recent quarter, more than double Hong Kong’s 36, and significantly ahead of Paris at 28 and Berlin at 13. New York, by contrast, recorded its lowest project count in years, driven by reduced investment from European Union countries amid U.S. trade policy uncertainty.
London’s information and communications sector grew by more than 6 percent in 2025, however, that rate is forecast to slow to 2.7 percent in 2026, against New York’s projected 5.3 percent. The capital’s finance and insurance
