Investment into Central London offices rose sharply last year with total volumes climbing 45.1% as investors focused on prime assets amid a continued return to the workplace.
Research by BPS London shows that total investment into Central London office space increased from £4.79bn in 2024 to £6.95bn in 2025.
In contrast, office investment across the rest of the UK fell by 28.5%, underlining the capital’s role in driving the sector’s recovery.
Across the wider UK market, the office sector recorded one of the strongest performances of any commercial asset class. Total office investment rose 18.8%, from £7.46bn in 2024 to £8.86bn in 2025. This placed offices ahead of industrial, which saw growth of 16.6%, while retail and leisure investment dropped 25.1%. Only the living and mixed-use sector posted stronger growth, at 32.1%.
HIGH QUALITY ASSETS
Despite rising investment volumes, overall transaction levels across the office sector declined by 6.9%, suggesting investors are targeting fewer, higher-quality assets rather than secondary stock.
BPS London said the divergence between London and the regions reflects stronger and more consistent office attendance levels in the capital, reinforcing confidence in long-term occupational demand.
The firm recently completed the acquisition of a core West End office building on Tottenham Court Road in Fitzrovia, alongside Purestone Capital.
The joint venture marks the first deal for their value-add investment platform, with plans to reposition the building to deliver upgraded workspace aligned with modern occupier expectations.
INVESTOR CONFIDENCE
Mahir Vachani, Director at BPS London Developments, says: “The office sector has been one of the standout performers over the last year, but what’s particularly notable is that this recovery is being driven almost entirely by Central London.
“What we’re seeing is a clear link between the return to the workplace and renewed investor confidence in the capital, with London leading the recovery in physical office attendance, which has given investors greater confidence in the long-term fundamentals of its commercial property market.”
He adds: “At the same time, investors are becoming far more selective. There is a growing focus on acquiring and upgrading buildings that can genuinely meet the expectations of today’s workforce, rather than simply acquiring space for the sake of it.
“Our recent acquisition on Tottenham Court Road reflects this approach and we see significant opportunity in repositioning well-located buildings to deliver the type of high-quality workspace that businesses now require.”
