A growing demand for office space to rent is partly compensating for the government's public sector cuts, according to construction firm Morgan Sindall.
The company reported a 12 per cent increase in revenue to £179 million for the office fit-out arm of its business during the first half of the year, according to City AM.
John Morgan, executive chairman of the corporation, said financial firms in London are driving the current demand for office space, but warned the construction recession is not over yet.
"The commercial side is growing, but let's not over exaggerate - it's growing a bit but not as quickly as [the government is] spending less," he commented.
The latest Monthly Index report from CB Richard Ellis showed values of central London offices grew by 0.3 per cent in July.
Furthermore, offices were the strongest performing sector in the
commercial property market with a capital uplift of 0.7 per cent,
largely due to central London's figures.
