There are many interesting areas in London, from busy business districts to quiet suburbs. The City is one of the most unusual. It’s full of activity at times, but then becomes something of a ghost town. High prices can also make it difficult to decide if it’s right to invest. We want to have a closer look here at the current situation in the area. Then, if you need help with investment properties in the City of London, you can trust us.

Vacant properties

One thing to note about the City is it has a relatively small amount of housing. The majority of the property in the area is for commercial use. In fact, according to ONS data, the population in 2023 was just 15,111. Incredibly though, the number of people can swell to well over 500,000 on work days.

Although there is only a relatively small amount of housing in the City, recent data from Compare My Move found that a large percentage of it is vacant. It has one of the highest volumes of empty homes in the capital, an incredible 32.9%. Even worse, the number of vacancies has been increasing since the start of 2025.

There are a couple of factors at play here. The major one is prices. It is an issue in many parts of Central London, leading to people looking further afield for homes. The popularity of remote and hybrid working is also crucial. It gives people the option to live further from where they work.

Could things change soon?

The number of vacant properties will cause some problems for owners. Falling prices are a concern too. However, overall there is still a lot of interest in investment properties in the City of London. Savvy investors will keep in mind that it is a difficult area to build more housing. Therefore, supply will always be in their favour.

There could be a silver lining ahead too. Many businesses are now pushing for a return to the office. As a result, earlier in the summer Savills said they are seeing a fall in office vacancies in Central London. They were down to the lowest levels since 2020. Offices rents in prime parts of the city are at record highs too.

On top of this, there are concerns about the supply of office space in London. Deloitte’s figures claim the pipeline will deliver 4m sq/f of new offices in 27 and 28. The total for both years is lower than 2025 alone. As a result, the expectation is we could see a supply crunch. It could push prices for offices up.

All of this makes it a really interesting time for investors. Is it a good idea to consider housing or office space? There is even potential that older offices in key parts of London could become attractive because of supply shortages.

Talk to us about investment properties in the City of London

Finefair Ltd is the perfect asset if you’re looking to navigate the tricky market in London. We have been working with properties in the city for a long time, building relationships with numerous clients and different councils. As a result, we can provide a wide selection of services. This includes guaranteed rent and management for various types of homes.

So, if the current situation is making you want to explore investment properties in the City of London, we’d love to help. There is plenty of potential for the future, especially with things like the return to office mandates and businesses planning moves. Contact us today if you want to discuss anything with us.