London office market ‘robust’


The London office market will prove resilient in difficult market conditions, a leading broker has indicated.

Citigroup has revised its ratings on a number of commercial property specialists, with analysts anticipating the market riding out the wider downturn in the property sectors.

Harry Stokes, a London analyst, wrote in a note picked up by Bloomberg that planning restrictions and room for improvement suggested the market "should remain robust".

It was a view echoed elsewhere and the share prices responded, as Citigroup revised its recommendations on Derwent London and Great Portland Estates, setting them both at "buy".

The office market in London has followed suit with the wider property market in recent years, with the demand for office space on the increase.

Last May, consultancy firm Davis Langdon said the London office market would add six million square feet of offices by the end of 2007 in response to demand

However, the recent downturn in the economy and the resulting slowdown in the property market are expected to create more difficult conditions.