London remains the world’s leading destination for foreign direct investment, according to the latest Global Cities Barometer from the London Property Alliance (LPA).
The city attracted more than double the investment of its closest competitor Hong Kong’s and almost seven times more than Berlin
However, the LPA warned London is in danger of failing to provide the commercial space required for growth, given the capital’s shortage of Grade A office space.
London attracted 86 foreign direct investment projects in the most recent quarter, compared with 36 in Hong Kong, 28 in Paris and 13 in Berlin. New York recorded its lowest project count in years, driven by reduced investment from EU countries amid US trade policy uncertainty.
Charles Begley, chief executive of the London Property Alliance, said: “London’s position as the world’s leading destination for international investment is a remarkable strength, particularly at a time when global uncertainty is pushing capital towards cities with stability and strong underlying fundamentals. But it is in danger of winning the race for investment and then failing to provide the commercial space required for growth.
“Central London is facing a serious shortage of modern workspace that global businesses require to deliver their growth strategies. We have lost 14m sq ft of office floorspace in the CAZ since 2018, half of which is in Westminster, and occupiers are renewing leases not by choice, but because there is nowhere else to go. Offices are critical economic infrastructure. Designating them as such in the National Planning Policy Framework, giving schemes the same planning weight as data centres and gigafactories, would be a decisive and low-cost intervention that unlocks growth, creates jobs and keeps London globally competitive.”
