Rental growth in Europe is being led by real estate located in London, Paris and Moscow,
King Sturge's quarterly report, European Property Indicators, has revealed.
According to the consultant, all three cities have reported a growing shortage in available grade A office space over the past year and all three have experienced either stable or rising office rents.
Indeed, King Sturge added that investment activity rose significantly towards the end of 2010, with the fourth quarter recording the highest investment volume since 2008.
Alexander Colpaert, European research associate at King Sturge, confirmed that there had been a surge in activity in the markets on a year-on-year basis, with Moscow recording by far the strongest rental growth
in Europe during the final three months of the year.
"In the office and industrial sector one can generally speak of a positive sentiment as market fundamentals are improving, but the retail sector shows a much more mixed picture," Mr Colpaert said. "Occupier demand should hold up across the sectors as the economic recovery continues, albeit at a relatively sluggish pace for this stage of the cycle."
- Wednesday 26 January 2011