The construction pipeline in the Square Mile has fallen by half in a decade, new figures show, as developers deal with higher borrowing costs and complex building requirements.

Figures from the City Property Association (CPA) revealed that the amount of office space under construction in the City has fallen to around 500,000 square meters, roughly half of the 1m square meters under construction ten years ago.

The CPA pointed to a number of factors behind the fall, including the effect of higher interest rates and more complex building requirements. These include new regulations on well-being and building sustainability, which make it more difficult for projects to achieve viability.