German institutions have bought nearly £600 million in central London office property since the start of the year, according to the Times Online:
http://business.timesonline.co.uk/tol/business/industry...y/article3475601.ece

The investors are taking advantage of the declining prices in the London office market; and they're getting deals.

But--even with prices dropping--construction of new office locations is ongoing in London. Some reports indicate more than eight million square feet of office space will be added to the financial district this year.

So are the German institutions being smart to buy British office space when it's low, or are they making a risky move based on the current rent market and expected future supply of office space?