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London tech scene escapes to the City

(Image credit: Image Credit: Everything Possible / Shutterstock)

London's tech firms are moving away from the Silicon Roundabout in favour of prime office space in the Square Mile according to new research from the real estate adviser Savills

In the first quarter of this year alone, tech companies have already committed to almost three times as much office space within the City compared to the City fringe. Last year the number of businesses in tech moving into the City was at the highest level since 2000, with a 65 per cent increase on the 10-year average. 

The first three months of 2018 saw London's tech industry take-up 114,843 square feet of prime real estate in the City which is already over half of the total tech take-up seen in the same are in 2017.  At the same time, tech firms also took up 42,473 square feet in the City fringe. 

The co-working firm WeWork also recently announced that it had acquired the City of London's Devonshire Square for almost £580m to help house the influx of tech startups coming to the City to open shop. 

Director of Savills' central London office, Paul Bennett offered further insight into how London's growing tech scene is transforming the city, saying: 

“When we have historically seen the majority of tech occupiers opt for fringe locations, there has been a notable shift in 2018 driven by a lack of supply in these areas.  Tech firms with large operations require buildings that will support their staff and business, and we are seeing landlords in the city core re-position their buildings to cater to these tenants.” 

Image Credit: Everything Possible / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.