The LPA’s latest Global Cities Barometer found the capital attracted more than double its closest competitor’s investment in the most recent quarter.

In this time, London attracted 86 foreign direct investment projects while Hong Kong, Paris and Berlin attracted 36, 28 and 13 respectively.

However, the LPA has warned the city faces critical supply challenges as West End office vacancy falls to 0.8%. This is the lowest ever level of vacancy recorded.

London Property Alliance’s research finds that London’s Central Activities Zone (CAZ) has lost 14 million sq ft of office floorspace since 2018, with Westminster alone accounting for more than 7 million sq ft.

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Major planning applications in Westminster fell 75% between 2013 and 2024, contributing to a projected shortfall of nearly 11 million sq ft over the next five years.

“London’s position as the world’s leading destination for international investment is a remarkable strength, particularly at a time when global uncertainty is pushing capital towards cities with stability and strong underlying fundamentals,” said Charles Begley, CEO at the LPA.

“But it is in danger of winning the race for investment and then failing to provide the commercial space required for growth.”

He added that more could be done at a planning decision level that would reflect office space’s critical role in the economy.

“Designating them as such in the NPPF, giving schemes the same planning weight as data centres and gigafactories, would be a decisive and low-cost intervention that unlocks growth, creates jobs and keeps London globally competitive,” said Charles.