Powering London’s Growth

£12.8BN and Rising: The Economic Strength of the Heart of London area  

The Heart of London area is helping power the UK economy — and new data confirms it.

Our latest Annual Economic Real Estate Insight Report 2024/25 reveals that the area generated £12.8 billion in Gross Value Added (GVA) in 2022 — a record-breaking 26.1% increase year-on-year. While covering just 12.8% of the West End’s footprint, it delivers 25% of its total GVA, underlining the extraordinary productivity and density of economic activity concentrated in the district.

Summarising our latest Annual Economic Real Estate Insights 2024/25 report released this week, we look at some of the factors, from increased footfall to a strengthening Experience Economy, that contribute to the area's resilience and momentum.

A hub of productivity

As of 2023, the area supports over 117,000 jobs, with two-thirds of employment in key sectors such as knowledge services (such as financial, legal or consulting based services), retail, hospitality, and arts and culture.
GVA per job also reached £114,550 — 76% higher than the UK average and 24% above the London average, a new record for the area and a clear signal of its outsized contribution to the capital's growth.

Resilient commercial property market

The commercial property market is showing signs of strength and stability:

• Office availability remains low at 5.7%, compared with 10.2% across London
• Office rents rose to £87.06 per sq ft, up £8.09 year-on-year
• Two major office-led schemes – Pegasus and Nuffield House, and 30 Duke Street – will deliver 146,000 sq ft of new workspace
• Retail and leisure availability dropped to 2.1%, its lowest point in three years
• Prime retail rents reached £104.42 per sq ft, outperforming the wider West End, which declined to £100.68

Strong footfall and international appeal

Footfall in 2024/25 reached 83.3 million, a 7% rise year-on-year, with international visits up 12%. Hotel occupancy climbed to 81%, nearing pre-pandemic levels.
To meet this growing demand, significant tourism and hospitality investments are underway, including:

• £90 million refurbishment of The Dilly
• £42 million renovation of The Z Hotel
• Planned refurbishment of Assembly Hotel

Cultural venues are thriving too:

• +36% footfall at the National Portrait Gallery
• +3% at the National Gallery
• West End theatre attendance is 11% above pre-pandemic levels

The Experience Economy is thriving

While average spend per transaction has softened, eating out rose by 3%, highlighting the growing value people place on social and cultural experiences. According to SOLT, for every £1 spent on a theatre ticket, an additional £1.27 is spent locally — a clear boost to hospitality, retail, and tourism.

Seamless connectivity

The Heart of London area remains one of the best-connected areas in the UK. In 2024-25, local stations recorded a total of 87 million passenger journeys, reinforcing the area’s role as a central gateway for business, culture, and tourism.

The West End leads London's return to the office

The Heart of London area continues to outperform other business districts in the return to office-based working:

• Peak office occupancy hit 62.1%, compared with:
  • 41.5% in the City
  • 46.9% in Docklands

With flexible working becoming the norm, patterns are changing. Thursdays have overtaken Fridays as the new peak for socialising and spending — reshaping hospitality demand and underlining the need for adaptable public realm strategies.

HOLBA’s business survey shows that most employers now operate under informal hybrid working guidelines, suggesting long-term change — and opportunity — for central London’s working culture.

What's needed next?

To sustain this momentum and unlock the West End’s full potential, strategic action and investment are needed. HOLBA is calling for support in four key areas:

1. Business rates reform – to level the playing field between high street businesses and online retailers
2. A dedicated West End crime taskforce – to enhance safety, resilience and visitor confidence
3. A redefined International Centre designation – to recognise the area’s dual strength in commerce and experience, enabling reform of planning, licensing and infrastructure delivery
4. Reinstating tax-free shopping for international visitors – to boost high-value tourism, increase dwell time and attract long-term investment

A blueprint for future city centres

The West End is delivering exceptional value for London and the UK — but continued strategic support is essential.

HOLBA’s proposed International Centre for Commerce and Experience would align commercial vibrancy with cultural excellence and infrastructure investment, creating a unified vision for the area’s future. With the right tools, the Heart of London area can continue to thrive — not just as the capital’s cultural and commercial core, but as a blueprint for how modern city centres evolve and lead.

 

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