Rents Soar at London Skyscrapers (City of London)

Fortune favours the bold, so they say of the City of London office market.

Demand is outstripping supply space in the crowded City of London. This bodes well for London's and the European economic recovery. Things are looking up.

City of London - 400,00 workers; Canary Wharf - 129,200 workers
The City of London (also known as the square mile) employs 400,000 workers, with 383,600 employees. Canary Wharf total employment is only 129,200, by comparison.  That is just 32% of the City's.  So, we should not be talking about the City of London and Canary Wharf in the same breath.  The scale certainly looks different.

Workday Population more than 50 Times Residential Population
According to the 2011 census, the total workday population for City of London was 360,000 and this was more than 50 times the residential population of 7,500. This was 2011. Latest statistics show that workday population has grown.

East of the City is Densest
The population density per hectare reveals important nuggets of information. The east side of the City is far more dense than the west.

Residential Population is Very Small
Note also the very small residential population. Why? The City planners have allowed very few residential developments and this trend is likely to continue. 

Travelling to the City
By now, it should be apparent that a huge number of City workers need to get to the City every working day. The last major survey on workforce travel in the City of London was conducted in 2001. 

Still, the findings are instructive. Graph B 3.2 shows distance travelled to work. Compared to 1991, it looks like more people are living nearer the City, therefore the percentage travelling 5-10km have increased while the longer distances have dropped.

The percentage who walk and cycle to the City is small, but growing.

City of London Growing Quickly
What do you make of all this?  The City of London is growing.  Very few people live in the city.  These people need homes.  Buying an apartment near the City, or with good transport links to the City, gives you the opportunity to rent to City workers who are more highly paid.

Any thoughts?  Please do share them on our community forum.

Happy Investing!