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Central London Office Values Seen Falling by 10% on Covid Impact

  • Values are set to stabilize next year before recovery in 2022
  • DWS says yields mean offices remain an attractive investment
London Luxury Property as Virus Hits Sales
Photographer: Hollie Adams/Bloomberg

Offices in central London are set to decline in value by as much as 10% this year as the pandemic drives down demand for space.

Short-term demand for offices has slumped, with many companies’ employees still working from home after lockdown, according to Simon Wallace, co-head of alternatives research and strategy at DWS Group. That’s likely to push rents in the capital’s most expensive areas down by about 8%, denting investor returns.