London Office Deals Rebound in 2025

Central London's commercial property market experienced a significant resurgence in 2025, with high-value transactions nearly doubling compared to the previous year. A total of 21 deals valued at £100 million or more were recorded in the capital's prime office sector, marking a substantial recovery in investor confidence.

This rebound reflects a strategic shift among major investors who are now betting on a limited supply of premium office space in the city. The surge in activity suggests that despite broader economic uncertainties, demand for top-tier commercial real estate in London remains robust. The figures indicate a strong finish to the year for the market, driven by institutional capital seeking long-term assets in a supply-constrained environment.

The volume of major commercial property transactions in Central London showed a dramatic increase during 2025. According to the data, there were 21 deals completed that were valued at £100 million or higher.

This figure represents a significant year-over-year improvement. The total number of high-value transactions in 2025 was almost double the amount recorded in the preceding year. This sharp rise highlights a renewed appetite for large-scale investments in the capital's real estate market.

The primary driver behind the market rebound appears to be a calculated bet on supply scarcity. Investors are increasingly viewing the limited availability of new, high-quality office buildings in London as a key factor that will support future asset values.

By acquiring premium properties now, institutional buyers are positioning themselves to benefit from potential rental growth as demand outstrips supply. This strategy underscores a long-term bullish outlook on London's status as a global business hub, despite current market fluctuations.

Several factors are contributing to the renewed confidence in the London office market. Investors are focusing on prime locations where new construction is difficult due to planning regulations and lack of available land.

The market dynamics can be summarized as follows:

• A near doubling of deals worth over £100 million compared to the previous year.
• Increased competition among investors for limited stock.
• A focus on long-term value rather than short-term yields.

These elements combine to create a favorable environment for sellers of top-tier commercial assets.

The trends observed in 2025 suggest a potential turning point for commercial real estate in the UK capital. If the supply of prime office space remains tight, the value of existing assets is likely to hold firm or appreciate.

Market watchers will be closely monitoring transaction volumes in the coming months to see if this momentum can be sustained. The current data points toward a resilient market capable of attracting significant capital even in a challenging economic climate.