Will new London office supply run dry from 2027?

The Central London office pipeline looks set to go from feast to famine over the next few years, with a sharp drop in planned completions from 2027. But we doubt new office supply will run dry. Constraints on development are easing and demand for new, prime offices is set to hold up. That will encourage new development which argues against a significant tightening in the prime market. We therefore expect prime London office rental growth will ease from over 8% y/y now to around 3.5% y/y by 2027.