The developer said reviving confidence in the key London market had prompted it to push ahead with two major schemes.

Chairman David Jenkins said: “There is evidence over recent months that some of the lights are coming back on within the UK economy.

“With the economy showing signs of recovery and demand strengthening in fringe locations of Central London, we now anticipate an increased focus on large-scale office developments.

He said contractor Wates has reached practical completion on its 10 Hammersmith Grove scheme, which was now 58% under offer.

“Given our progress, we are now priming the second phase, 12 Hammersmith Grove, a 165,000 sq ft grade A office building for commencement in early 2014.

“As with 10 Hammersmith Grove, this speculative development will be forward-funded with an institutional partner prior to commencing construction.”

Announcing half-year results Development Securities also said it would be pressing ahead with its 6-acre Shepherds Bush Market regeneration scheme, which involves building a new market, 212 flats and shops.

A compulsory purchase order is expected to go through early next year, allowing for an immediate start on the project.

Jenkins said:  “A weaker Sterling exchange rate, improving consumer sentiment and Government initiatives to resuscitate the housing market have largely driven this upturn.

“London, with its population growth and status as a leading global city, has benefited from positive GDP growth for some time now and, with a steady influx of foreign capital and further infrastructure improvements, this seems set to continue.

“Outside of London, however, concerns remain as to whether this incipient economic recovery is sustainable.”