Business · Markets · 3 hrs ago
London offices offer yields of 5.25% in the City
London ranked Europe’s top city for property investment in PwC’s 2026 survey, ahead of Madrid, Paris, Berlin and Amsterdam.
Investors value the city’s liquidity, transparency and ability to adjust property valuations quickly.
Office returns differ by area: the City averages 5.25%, compared with 3.75% in St James’s, Mayfair and the West End.
New office leases are currently seeking returns of about 6%, and technology companies, finance and insurance firms, and professional services are driving demand.
Retail properties on Oxford Street and Regent Street yield about 4%, with clothing, food, and health and beauty among the strongest sources of demand.
Investors also need to account for lease terms, which can require tenants to pay rent and certain property costs, as well as repair costs if they leave a property in worse condition.
One million square metres of new offices are planned in the City by 2040, while retail investment interest is supported by international brands, foreign investors and limited supply.
London is the leading European city for property investment in PwC’s 2026 sector trends report, according to Expansión.
Savills puts office yields at 5.25% in the City and 3.75% in St James’s, Mayfair and the West End.
Current office contracts being signed seek yields of around 6%, the article says.
Retail property yields in Oxford Street and Regent Street are 4%.
Technology, finance and insurance, and professional services are driving office demand.
- Who
- Investors considering London property, including Spanish investors.
- What
- Office yields are 5.25% in the City, while retail yields in Oxford Street and Regent Street are 4%.
- When
- The article was published on 15 October 2026. The PwC report covers sector trends in 2026.
- Where
- The City and other areas of London, including St James’s, Mayfair, the West End, Oxford Street and Regent Street.
- Why
- London attracts investors for its liquidity, transparency and speed in adjusting valuations; the article also cites international firms, foreign investor interest and limited retail supply.
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- City office yield
- 5.25%
- St James’s, Mayfair and West End office yield
- 3.75%
- Current office contracts
- Around 6% yield sought
- Oxford Street retail yield
- 4%
- Regent Street retail yield
- 4%
- Future City office development
- 1 million square metres planned by 2040
1 source
What people are saying
el inquilino abona la renta, pero además el equivalente del IBI y los gastos de comunidad; el seguro lo paga el propietario para garantizarse que se han contratado las coberturas necesarias, pero lo repercute al inquilino