Modest growth has been forecast for the European office market
in the coming year, analysts have suggested in the latest European Office Property Market report from King Sturge.
Despite 2010 providing the ideal platform for economic improvements and real estate recovery, the increases in the coming year will be unspectacular.
Indeed, King Sturge explained that while certain areas such as the Nordics and Central Europe performed exceptionally well in terms of transaction levels last year, they remain relatively small investment destinations.
The firm is confident that investment activity in the sector will strengthen by the end of the year, with earlier indicators suggesting that the market is reasonably buoyant.
Recent statistics suggest that the first quarter of 2011 has seen GBP 11 billion spent.
"Prime office yields are expected to remain stable in the short term in most Western European markets with rental growth likely to be the main driver of capital growth in the short term," said King Sturge European research associate Alexander Colpaert.
He added that the best-performing markets in the coming year are expected to be London, Paris, Berlin, Warsaw and Moscow - all recorded double digit rental growth in 2010.
- Tuesday 10 May 2011