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Capital gains: London’s office rental market offers new investment opportunities
- July 1, 2024: Vol. 18, Number 7

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Capital gains: London’s office rental market offers new investment opportunities

by Marco Kramer

Despite the weak UK economy, financial sector company relocations and the general trend towards remote working, London’s office market offers attractive opportunities for real estate investors.

The metropolis on the river Thames enjoys comparatively robust office rental markets in the prime segment, along with historically high yields. This situation is primarily down to the office market undergoing significant change. Buildings that do not meet modern requirements are rapidly being adapted to companies’ needs, as many firms are being drawn back into the City of London’s office market from surrounding areas, which has created an increasing shortage of space. One striking example of this migration is the relocation of HSBC. After more than 20 years at Canary Wharf, the bank plans to move its headquarters to the City of London.

The amount of office space that companies can secure in London is not as important to them as the quality of an office’s surroundings. Pr

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