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European Office Rents 'Display Modest Growth'

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real estate  Europe  Dublin  Jones Lang LaSalle  London  Paris  Warsaw  Madrid  Moscow  Commercial Property Performance  Barcelona  Lyon  The Savills European Investment Bulletin 

European Office Rents 'Display Modest Growth'

By - Wednesday 14 September 2011

Figures published in a Jones Lang LaSalle report into the state of Europe's office markets during the second quarter of the year have revealed that rents grew at a "modest" pace over the course of the three-month period, with an average rise of 2.1 per cent recorded in the firm's European Office Index. It noted that strong quarters in Moscow, Warsaw and Lyon helped boost the performance of the continent overall.

However, the firm pointed out that certain markets are suffering from issues with sovereign debt - notably in Madrid, Barcelona and Dublin. Meanwhile, demand for office space remained subdued, although it was two per cent higher than in the first quarter of the year. The company predicted that this is likely to pick up in some German and Nordic areas, as well as in London and Paris where constricted supply will help the sector improve. The Savills European Investment Bulletin for summer 2011 recently noted that investment volumes for commercial real estate across the region were approximately eight per cent higher in the first six months of this year than they were in 2010.

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