Q2 2020 Central
The UK economy has experienced a deep contraction recently. Although London is expected to weather the storm well, how has the office market performed over the last quarter?
That the UK economy has experienced a deep contraction as a result of Covid-19 is in no doubt. What remains unclear are the prospects for the medium term and whether the pandemic will change the world more permanently. GDP fell by 2.2% in the first quarter, but the downturn accelerated in Q2 with Oxford Economics (OE) predicting a decline of 22.1%, with further double-digit falls expected in Q3.
OE employment forecasts for London suggest that any fall will be short-lived, with office employment recovering to pre-Covid levels by the end of 2021, with continued growth thereafter.
London is expected to weather the storm better than other regions of the UK - with the smallest decreases in gross value added (GVA) in 2020 expected - and will lead the way in the longer term.
Read more about London and the office market in our Q2 2020 report.