London remains world's most expensive office market: C&W

London’s West End is the world’s most expensive office market for the second year in a row, maintaining its lead ahead of runner-up Hong Kong, according to research published by Cushman & Wakefield.

Strong demand and a dwindling supply of high quality space pushed office rents in the West End up 5% in 2013, according to C&W’s annual Office Space Across the World report.

Furthermore, with rents largely unchanged in Hong Kong Central over the year, the gap in total occupancy costs between the two cities has widened.

'London remains attractive for many international businesses as its global appeal continues to grow. With prime space at a premium in the West End and a steady demand for offices from across all sectors, significant rental growth can be anticipated in 2014,' said Digby Flower, C&W's UK chief executive and head of London markets.

Global office rents moved up by 3% in 2013, the third consecutive year of similar rental performance, while all three regions witnessed a relatively slow pace of rental growth over the year. However, certain areas - such as Africa and the Middle East - saw a more buoyant rental market, with prime rents up by as much as 10% in certain locations.

Moscow’s central business district (CBD) surged from sixth position in last year’s ranking to third place, with rents holding firm over the last 12 months as occupier demand remained consistent.