The sight of cranes above the London skyline is set to become more common, with office construction up 24% in the past few months.
At the heart of the construction boom is the City area, where several brand new skyscrapers are being built. Half of the proposed 9.5 million square foot of office space will be in the City, with areas such as the West End, Docklands, and Midtown also enjoying more commercial space.
However, this extra available space doesn't necessarily mean a drop in rents, with Anthony Duggan of real estate agent Deloitte telling the Financial Times he expects "further rises in rents and more pre-let deals on schemes under construction as tenants compete for the limited amount of available space."
This construction boom doesn't show any signs of slowing down, with upcoming projects including the Pinnacle skyscraper which is being built on Bishopsgate in the City. This will be the second tallest building in Europe, and will offer 947,200 sq ft of office space.
The London skyline has been undergoing many changes in the past few years, with iconic buildings such as the so-called Walkie Talkie building, officially known as 20 Fenchurch Street, and the Leadenhall Building, affectionately known as the Cheese Grater. Much of the money has come from overseas investments, with Middle Eastern, Russian, and Asian investors taking an interest in the capital.
Demand for office space in London has sky-rocketed in the past few years, with the city avoiding the worst of the recession that hit most of the UK. Prices rose 17.8% in 2014, with a further 4-5% rise predicted for 2015 by experts, and when combined with low interest rates, this has lead to a huge demand for properties.