Eurozone 'will impact London offices'

09 December 2011

Written by Simon Whittaker

The value of office space in London could be damaged by the crisis in the eurozone.

British Council for Offices chief executive Richard Kauntze claimed the capital will be impacted by an economic collapse in the continent, as large sums of money from Spain, Italy and Greece has been invested in it recently.

However, commercial mortgage holders may be pleased to hear he believes the centre of the city will remain "pretty robust".

Overseas investor activity will keep assets within the Circle Line "buoyant" as London is presently viewed as a safe haven for these individuals, the expert declared.

People from foreign countries currently own 52 per cent of all city offices, The Who Owns the City report published by Development Securities and created by University of Cambridge researchers discovered, noting this figure was eight per cent in 1980.

In general, the price of offices within the capital will remain "virtually static" during 2012, Mr Kauntze continued.

Growth will be "very, very modest" but a double-dip recession is unlikely to occur, he stated.