The supply of office space in major European cities is expected to be restricted over the coming 12 months due to a lack of new construction starts, research by CB Richard Ellis (CBRE) has suggested. According to the organisation, completions of new offices may drop by as much as 30 per cent by the end of the year.
However, there are some markets that are on the up, with London and Paris cited as two locations that have experienced an upturn in new developments. Investors may be particularly drawn to the UK capital, with CBRE noting that property and rental values have recovered well, prompting greater interest from construction firms looking to create extra office space.
Bruno Berretta, Europe, Middle East and Africa research and consulting analyst at the company, stated that the UK's capital "stands out as one of the few major office markets where developer interest is growing". Earlier this month, Savills reported that commercial development activity throughout the country increased in June, albeit only marginally.