The amount of leases of London office space has more than doubled since this time last year.
In the first quarter of 2010 leasing of Central London office space saw a 100% increase, compared to Q1 of 2009.
Within Q1 2010 the city actually leased or sold 2.2 million square feet of office space, compared to only 0.7 million sq-ft for the same time last year.
The increase in occupancy is thought to be cause by the increased demand in property, in particular financial firms, lawyers, media firms and insurers have all increased their presence in London.
Tim Robinson, head of West End leasing for Knight Frank, said, “We have now seen two consecutive quarters in which take-up has exceeded the long-term average, which makes me confident the market has now moved into a new cycle.”
However there are some fears that this recent increase in occupancy may be tampered by the up-coming election.
Knight Frank, real estate agents, have warned that the UK General Election will probably slow the market right down, as people become uncertain about London based property.
James Roberts, a head research for Knight Frank said, “The upcoming election will dampen demand in the next three to six months, but that is just near-term political turbulence. ”
“I see activity coming back once the political uncertainty is removed, as there is a head of steam behind demand.”