Just six new schemes have been started in central London over the last six months, a dramatic reduction compared with previous years, according to the latest Drivers Jonas Central London Crane Survey for Q1 2009. In total, the six schemes account for 160,000 sq ft (14,864 m2) compared with 37 new starts totalling 4.2m sq ft 18 months ago.
Just six new schemes have been started in central London over the last six months, a dramatic reduction compared with previous years, according to the latest Drivers Jonas Central London Crane Survey for Q1 2009. In total, the six schemes account for 160,000 sq ft (14,864 m2) compared with 37 new starts totalling 4.2m sq ft 18 months ago.
In total, 10.3 mln sq ft is currently under construction in central London, of which 7.15 mln sq ft is available to let, the study concluded.
'In summary we believe we are in for a tough 18 months with further rental declines, increasing incentives, and possibly the lowest take-up in 2009 since records began,' the adviser said in a press release. 'However, we do see some green shoots such as the reducing pipeline, the potential increase in structural demand in a few years time and the stabilisation of yields. As a result, we believe it is too early for most to start building now, the savvy should get ready to take advantage of some good opportunities over the next 6-12 months.'
The report concluded that the development pipeline is slowly clearing, but added this is not a quick process. 'From 2011 onwards there is nothing of size scheduled for delivery. Given that few developers will start this year, the lack of completions will be getting more and more obvious as time moves on.'
