A financial report announced that Central London has seen a significant decrease in investments since the current government announced plans for the general election.
Cushman & Wakefield, a leading commercial property firm, reported that during the first quarter of 2010 investment in commercial property has fell by 50%.
As the announcement of the general election happened within the first quarter, it is thought to have had an impact on the investment within the capital.
The figures show that the commercial property sector has received £1.63 billion in the first quarter of 2010, with major investments in the West End, City of London and Docklands areas.
However this is still significantly lower that the £3.0 billion that was invested into Central London office space during the fourth quarter of 2009.
In fact the 50% decrease in investment is the first drop in nearly a year and this has led some to speculate that the approaching election may have had an impact on office investments.
Some have suggested that the link is an obvious one, as the election has created uncertainty about the value and demand of commercial office space.
Whereas others have suggested that the slump in the market may just be due to the weak value of the sterling in recent months.
However, within the second quarter the decrease seems to be levelling off and in fact office investments in some areas have seen a very clear growth.
Nevertheless the market has still not recovered in entirety, as a a lot of investors are staying on the sidelines until the election is over.