Report

London, skyscraper boom: 600 building permits in 10 years

In 2030 the City will grow to ten million inhabitants. Between limited land and the need to preserve the green belt, the only solution is to grow vertically. And house purchases and sales are falling

4 June 2024

3' min read

Manhattan on the Thames: this is London's new nickname. The British capital, once made up of single-family villas, terraced houses and residential blocks of a few storeys around a garden, is now becoming a metropolis packed with skyscrapers. We are not yet at the level of New York, but the trend to build vertically is irreversible and accelerating.

In the last ten years, 270 buildings of more than 20 storeys have been built in London. Over the next ten years, more than twice as many will spring up, almost 600: 583 skyscrapers of varying heights have received planning permission or are already under construction. This is confirmed by a study by New London Architecture (Nla), experts in the field, who have long been following the evolution of the British capital's skyline.

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Photogallery11 foto

"Tall buildings have profoundly changed the face of London over the last 20 years and will continue to do so over the next decade, given the number of projects already in the pipeline," explains Peter Murray, co-founder of NLA and one of the authors of the report 'Growing up: a decade of building tall'.

Behind the boom is the steadily increasing demand for houses and offices in the capital and the equally strong interest of foreign investors in the London market. London, which now has eight million inhabitants, is expected to reach ten million before 2030.

The boom was encouraged by the relative ease in obtaining planning permission to build skyscrapers. The three mayors that London has had have been from different parties and of different opinions on many things, but they have agreed that the city needs to grow. Since there is limited land available and the so-called 'green belt' around the city must be protected at all costs, the only solution is to grow upwards to make maximum use of the space that is there.

In the last quarter of a century, all three of the capital's first citizens have encouraged the construction of more skyscrapers: both Ken Livingstone, Labour, the first mayor of London with two consecutive terms from 2000 to 2008, and his successor, the Conservative Boris Johnson (later famously to become premier) from 2008 to 2016, and the current mayor Sadiq Khan, Labour, who has just been re-elected for an unprecedented third consecutive term.

Londoners, on the other hand, are not so convinced: according to the latest poll, half of the residents believe that there are already too many tall buildings in the city and would like a break, compared to 32% against a decade ago. At least one skyscraper, however, remains popular: it is the Shard, designed by Renzo Piano, which was voted the absolute favourite. At 310 metres high, the Shard or 'sliver of glass' also holds the record as the tallest building not only in London but in Western Europe.

Many of the skyscrapers under construction are intended for office use. In the City, the historic centre of finance, the number of building permits submitted and approved has increased by 25 per cent in the last year. The impetus comes from the demand for high quality, super technological and environmentally compliant offices - from natural light to energy efficiency and purified air - to convince employees to abandon smart working and return to the office.

Another fast-growing segment, fuelling the construction of high-rise buildings, is that of residences for students, especially international ones, who are willing to pay high rents to live in central and well-connected areas but demand hi-tech common areas and amenities worthy of a five-star hotel.

The residential sector, on the other hand, is marking time: despite the 'hunger' for houses, the number of purchases and sales has fallen due to the economic slowdown and the sharp rise in interest rates, which has pushed up the cost of property mortgages. Those who cannot afford to buy have to rent, and demand has exploded, as have prices.

Purchase prices, on the other hand, are on a downward trend and have fallen by 4.8% in the last year. According to many real estate agents, now is therefore the time to buy, before an expected recovery towards the end of 2024.

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London, skyscraper boom: 600 building permits in 10 years

In 2030 the City will grow to ten million inhabitants. Between limited land and the need to preserve the green belt, the only solution is to grow vertically. And house purchases and sales are falling

I grattacieli di Londra

Brand connect

I prossimi eventi

Newsletter RealEstate+