NEWS·JANUARY 2026
City Investment Ends 2025 on a High with Best Month Since 2022
The City of London office investment market closed 2025 with its strongest month in almost four years, according to the latest City Investment Watch analysis.
NEWS·JANUARY 2026
City Investment Ends 2025 on a High with Best Month Since 2022
The City of London office investment market closed 2025 with its strongest month in almost four years, according to the latest City Investment Watch analysis.
December saw turnover of £1.55bn across 20 deals, the highest monthly figure since March 2022. That took the full year total to £4.63bn across 101 transactions, with December alone delivering three deals above £250m, including the £340m sale of 70 St Mary Axe.
A market that found its floor
Twelve months ago, the question hanging over City offices was whether values had further to fall. The answer is now clear. Prime City yields have stabilised, the best buildings are letting at record rents, and institutional capital has returned to large lot sizes.
The composition of buyers is as interesting as the volume. Credit investors, private equity backed platforms and overseas capital all feature in December's tally, a breadth of demand that was absent through 2023 and most of 2024. Domestic institutions, net sellers for two years, are selectively buying again.
The caveat is polarisation. This recovery is concentrated in best in class, ESG compliant stock with strong income. Secondary buildings without a clear refurbishment or repositioning story remain illiquid, and that divide will define pricing through 2026.
Our read is that the City has passed the trough. Volumes should build steadily this year, led by prime, with the yield gap between best and rest slowly narrowing as debt markets normalise.
December saw turnover of £1.55bn across 20 deals, the highest monthly figure since March 2022. That took the full year total to £4.63bn across 101 transactions, with December alone delivering three deals above £250m, including the £340m sale of 70 St Mary Axe.
A market that found its floor
Twelve months ago, the question hanging over City offices was whether values had further to fall. The answer is now clear. Prime City yields have stabilised, the best buildings are letting at record rents, and institutional capital has returned to large lot sizes.
The composition of buyers is as interesting as the volume. Credit investors, private equity backed platforms and overseas capital all feature in December's tally, a breadth of demand that was absent through 2023 and most of 2024. Domestic institutions, net sellers for two years, are selectively buying again.
The caveat is polarisation. This recovery is concentrated in best in class, ESG compliant stock with strong income. Secondary buildings without a clear refurbishment or repositioning story remain illiquid, and that divide will define pricing through 2026.
Our read is that the City has passed the trough. Volumes should build steadily this year, led by prime, with the yield gap between best and rest slowly narrowing as debt markets normalise.