Fintech firms predicted to have strong demand for London offices

Demand for office space in London from fintech firms is likely to be resilient, according to new research from Savills. This is due to the global lockdowns forcing businesses, such as retail banks, and consumers to adapt in order to survive. “It has turbo-charged the digitalisation of the traditional banking and finance sector in key European countries,” said Matthew Fitzgerald, director, cross-border tenant advisory at Savills. “The GFC fostered entrepreneurship which, coupled with the rise of controversy around the big banks, saw the entry of challenger banks and a whole array of start-ups. I am confident that this sector will again emerge stronger in the aftermath of the Covid-19 crisis.” He added: “With the ramifications of the pandemic accelerating the digitalisation of the financial services industry across Europe, we expect to see rapid innovation and growth in this sector and, with expansion, comes the demand for office space.” London is also still the top location for fintech firms to set up in due to its financial services clusters providing potential growth opportunities, a wide talent pool and a friendly regulatory environment. However, Berlin, which ranked second, is fast catching up and is becoming a desirable destination for these businesses. “The city’s fast-growing population of students and young professionals is driving innovation across the city,” said Mike Barnes, Savills’ European research associate. “More patents were signed in Germany than any other European country during 2019 and the city is home to one of the world’s fastest-growing challenger banks, N26. In terms of prime rents, Berlin still offers a 50% discount to London.” To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette