Demand for commercial property in Europe
could be set to rise following a recent prediction from one consultancy. DTZ's annual Global Occupancy Costs: Offices' survey forecasts that the average commercial office occupancy costs will grow two per cent year-on-year to 2015.
However, the firm noted that overall costs will remain 11.7 per cent lower than at their peak in 2007.
London's West End and some Central Eastern European markets are expected to see their costs increase by the most, with the west End becoming the fastest growing office market on the continent
over the course of the next five years.
Indeed, London is expected to cement its position as the second most expensive office market in the world, behind Hong Kong, as a result of a recovery in demand and a lack of supply and new developments.
"We expect increasing occupancy costs across Europe to be driven by rising rents, but rental growth is underpinned by varying factors. The rebound in global production and consumer spending is driving rental growth in Eastern European office markets," said Magali Marton, head of CEMEA research at DTZ.
- Monday 07 March 2011