Signs of a turning point in Europe's office sector were evident during the first quarter (Q1) of 2010, according to the latest research from CB Richard Ellis (CBRE).

Signs of a turning point in Europe's office sector were evident during the first quarter (Q1) of 2010, according to the latest research from CB Richard Ellis (CBRE).

The CBRE EU-27 office rent index registered a 1% increase in Q1 after 18 months of decline. This was largely the result of changes in London and Paris, where the first signs of genuine expansion activity took place. Rental growth is likely to become more widespread later in the year as other markets strengthen across Europe.

Richard Holberton, director of EMEA Research, CBRE, said: 'The severe slowdown in office leasing activity which characterised 2009 appears to be easing across Europe, however most markets continue to be driven by a large number of small and medium-sized deals. London has seen an increase in large deals, however, being the market which has seen the most remarkable turnaround of any European office location over the past six months. The London City financial district registered 10% rental growth this quarter alone and a shift in the overall market is clearly evident as landlords across Central London are now also offering fewer incentives to prospective tenants.'

Office vacancy continues to rise across Europe but the rate of increase is now slowing.