Investment activity in the South East office market reached £1.51bn last year – a 16% increase on 2023, according to the latest data from Newmark Group.
There was a 35% rise in transactions with more than 110 deals closing, marking an improvement on the historic low recorded in 2023. However, transaction volumes remained below the five-year average of £2.37bn.
Newmark’s data shows transaction volumes slumped to £232m in Q3 2024, making it the second lowest quarter since 2017. However, there was a significant rebound in Q4, with sales volumes reaching £586m – a 153% increase on Q3.
Guy Freeman, from Newmark, said: “While 2024 began with uncertainty, the significant surge in volumes leading into 2025 signals a renewed sense of investor confidence. Institutional investors once again led the market, driving transactions as they strategically rebalanced portfolios in response to shifting occupational demands and rising interest rates.
“Simultaneously, sustainability considerations continued to accelerate, prompting divestment from secondary office spaces in favour of energy-efficient assets. With growing demand for sustainable offices and evolving investment strategies, 2025 is set to be a strong year for the South East office market.”
