Boosted by Barclays £750m acquisition of their 1m sq ft headquarters at One Churchill Place, Canary Wharf, Q2 ’26 volumes reached £2.0bn. This is marginally ahead of the previous quarter but 28% below the 10-year quarterly average. Consequently, H1 ‘26 volumes total £4.0bn, 18% below the same period last year.
Barclays’ acquisition reflects a growing trend among occupiers seeking greater long-term certainty, control and flexibility over their real estate portfolios through ownership. This is being reinforced by strong rental growth expectations and attractive pricing opportunities. In the first half of 2026, seven owner occupier deals have transacted across Central London, up on four seen in H1 ’25.
German investors have been most active buyer group in the first half of 2026 deploying £502m, up significantly on £56m over the same period last year. Deka’s £215m acquisition of Stirling Square, Carlton Gardens, SW1 from Tristan Capital Partners signals the largest transaction from German investors so far this year. We expect to see further activity from this buyer group as liquidity conditions improve and valuations stabilise.
H2 2026 is likely to be characterised by continued geopolitical and political uncertainty, with ongoing tensions in the Middle East and the UK's evolving political landscape weighing on investor sentiment. However, there are reasons for optimism, GDP returned to growth in May driven by the services sector, reinforcing the resilience of office based sectors. This is further supported by office employment growth of approximately 2% per annum over the next five years (2026-30), driven by knowledge led sectors where London maintains a significant competitive advantage.
Against a backdrop of elevated gilt yields, investors will remain focused on opportunities that provide a clear premium over the risk free rate. As a result, capital will remain highly selective, focused on high-quality assets where strong occupational performance, secure income and rental growth prospects underpin long-term performance.