Deloitte London Office Crane Survey

Deloitte London Office Crane Survey:  Occupiers continue to prioritise best-in-class space, but development pressures deepen

• New construction starts fell by 35% year-on-year to approximately 4.8 million sq. ft., with refurbishments accounting for two thirds (66%) of all new start volume;

• 2025 saw the delivery of 7.1 million sq. ft. of new office space in central London, up 8% on 2024 and the third highest annual volume in the Crane Survey’s 30-year history;

• Deloitte analysis points to a more selective development pipeline and a potential office supply gap from 2027 to 2030.

The latest edition of the Deloitte London Office Crane Survey has revealed a decline in new office construction starts and a drop in new builds, resulting from viability challenges and occupiers demanding the best-in-class space. 

The survey – which collected data between 1 January and 31 December 2025 - noted that new start volumes in 2025 dropped to approximately 4.8m sq. ft. across 57 schemes. This was down from 7.5m sq. ft. in 2024 and 8.7m sq. ft. in 2023. This is also below the five-year average of 6.5m sq. ft.

New build projects more than halved year-on-year, accounting for 1.6m sq. ft., down from the 3.6m sq. ft. recorded in 2024. The strategic pivot to refurbishment projects continued, with 3.1m sq. ft. commencing. This represented two thirds (66%) of new starts, though this was down from 3.8m sq. ft. in the previous year. Refurbishments have now outstripped new development throughout the post-Covid period.

In 2025, 7.1m sq. ft. of office space was delivered to market, a rise of 8% from 2024. This also marks the third highest volume recorded in the Crane Survey’s 30-year history, surpassed only by 2003 and 2023.

This survey points to a potential supply gap from 2027 to 2030, as fewer new schemes have started or completed, as developers are tending to bring forward only the most robust opportunities.

However, developers are confident about the resilience of demand among occupiers for grade-A office accommodation. Most developers anticipate that their office pipeline will either ‘increase’ (58%) or ‘remain stable’ (34%)’ over the next 12 months. Three quarters (75%) of developers also reported feeling more positive about leasing demand than 12 months ago. The report also noted that prime rents hit £187 per sq. ft. in the West End, where vacancy sits at just 1%.

Caroline Waldock, partner, real estate sector lead for Deloitte, said: “London’s office market remains attractive, and the capital continues to attract global investment, talent and businesses. Occupier requirements and demand for best-in-class space is strong and is underpinning record prime rents.

“Larger tenants are facing scarcity, with competition for high-quality assets that are suited to companies’ changing sustainability and technology requirements. However, while developers are confident in their pipeline, there are real delivery constraints, which brings with it a potential future supply gap.”

Philip Parnell, partner and head of real estate valuation at Deloitte, added: “Developers are once again facing rising construction costs and financing uncertainty alongside planning complexities associated with delivering projects in the capital. The continued shift to refurbishments goes beyond sustainability requirements and represents challenges around scheme viability, delivery risk and addressing occupiers’ evolving needs around quality and flexibility.”

ENDS

Notes to editors

Deloitte’s London Office Crane Survey measures office development activity across Central London and covers only new-build construction and significant or comprehensive refurbishment schemes of 10,000 sq. ft. and above. The survey covers the City, West End, Docklands, King’s Cross, Midtown, Paddington and Southbank.

Survey construction metrics exclude cleared sites with no construction activity, demolition-only or strip-out-only sites, and schemes where construction has halted prior to completion. In the context of the survey, new builds are schemes that create a new structural frame (typically on cleared sites or following demolition of the previous structure). Refurbishments are significant or comprehensive works to an existing building that retain the existing structural frame.

From this edition onwards, the annual survey period runs from 1 January to 31 December.