Property values in London’s Canary Wharf financial hub held steady at around £6.8 billion ($9 billion) in 2024, following a sharp 15% drop the previous year due to pandemic-driven declines in

office demand.

To reinvigorate the area, developers are working to broaden its appeal by adding more residential units, hotels, and restaurants. However, the district faces challenges, as major tenants like HSBC prepare to relocate to the more centrally located City of London.

According to its latest financial results, Canary Wharf Group—jointly owned by Brookfield and the Qatar Investment Authority—reported its property portfolio was valued at £6.75 billion, down just 1% from £6.83 billion in 2023.

In December, the group secured a £610 million loan from U.S. investment firm Apollo to refinance maturing bonds. While this increased borrowing costs, it helped reduce short-term refinancing pressure.

Vacancy rates remain a concern, with office space in the Docklands area hitting record highs. CoStar warns that vacancies could climb to 30% in the coming years unless tenants are found for 2 million square feet of soon-to-be-empty space.

Still, there are signs of improvement as more companies encourage employees to return to the office after widespread remote work during the pandemic. Photo by S nova, Wikimedia commons.